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An airline estimates that the price elasticity of demand for business travelers (who travel on weekdays) is - 2, while the price elasticity of demand for vacation travelers (who travel on weekends) is - 5. If the airline price discriminates (and costs are the same), what will be the ratio of weekday to weekend prices?
Should society attempt to equalize income or economic opportunities? Are the issues of equity and equality in the distribution of income synonymous? To what degree, if any, is income inequality equitable?
Suppose the welfare benefit formula is. How large is the benefit if wages equal. What is the marginal tax rate on.
Elucidate the likely impact of this event on the market for gasoline and the market for small cars.
What sense is the marketplace cruelly capricious - One of the important things.is to counter the notion that big corporations are faceless machines
If collusion is not allowed, what kind of market arrangement do you think is likely to result from competitive interactions among these four firms? Calculate the profits of these firms in either case (a and b).
For each of the following, state whether it is considered money in the United States. Explain why or why not.
Why did Japan's export based economic groth stall in the period 1990-2012? In particular, focus on the differences between the modern
what money growth rate should the Fed aim for to hit its inflation target in that period? If the Fed instead maintained the money growth rate from part a, what is likely to happen to inflation.
How are prices determined under perfect competition? Think about a firm that you have done business with recently. What industry does this firm belong to? Is it monopolistic competition, oligopoly, monopoly, or perfect competition? Justify your class..
Assume that the free trade unit price of a lamp is $200 and unit cost of an input for a lamp is $100. Given this information about lamp production in a country, calculate the effective rate of protection (ERP) afforded to the lamp industry by a 12% t..
Ethnocentrism is generally defined as viewing one's own culture as superior to all others. However, quite often, it is not quite that obvious. Whenever we encounter something that seems strange or different, we will feel some degree of discomfort. Ho..
Clarify what action monetary policymakers must take for the actions of fiscal policymakers to have no effect on real income.
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