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Suppose the own price elasticity of market demand for retail gasoline is -0.9, the Rothschild index is 0.4, and a typical gasoline retailer enjoys sales of $1,700,000 annually. What is the price elasticity of demand for a representative gasoline retailer’s product? Instruction: Show your work and round your answer to 2 decimal places
What is the implication for the real exchange rate if the PPP condition holds? Under what circumstances does the PPP theory explain how exchange rates are determined why is it not completely accurate all the time?
Explain how many cases of toothpaste should be produced in order to maximize profits. Illustrate what happens if its decided to raise prices unilaterally in this toothpaste market.
Compute the minimum rate of interest, and, therefore, the risk premium, at which you would lend $1000 on the informal market. Suppose you are risk-neutral.
A competitive advantage furthermore earns a life span income of $6 million moreover the non-steroid user earns $1 million.
"Illustrate what is meant by the term 'utility,' and how does it relate to purposeful behavior." In one to three pages, fully explain your answer in a way that shows your understanding of "utility" and human behavior.
Should we worry or lose sleep over our $16 trillion public debt? If there are legitimate concerns related to our increasing public debt, what are they and why should they be of concern?
Explain why an industry in a perfectly competitive marketplace would choose to remain in business, if its profit is zero at equilibrium.
The college has annual fixed costs of $10 million, and the variable cost for each additional student is $5,000. To continue operating, the college must receive payments equal to its total costs.
Describe one possible combination of government spending increases and tax decreases that would accomplish the same goal.
The world becomes a single market, some new approach must be developed to control the reach of the corporate oligopolies.
Compute the equilibrium level of income for the open economy aggregate expenditure model.
Do you agree or disagree with the following statement? "Politicians would make more rational economic decisions if they weren’t running for re-election every few years.” Are there any benefits of making politicians go up for re-election?
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