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1. "As more people buy fuel-efficient hybrid cars, the demand for gasoline will decrease and the price of gasoline will fall. The fall in the price of gasoline will decrease the supply of gasoline." Is this statement true? Explain.
2. OPEC deadlocked on oil production hike Oil prices exceeded the $100-a-barrel mark Wednesday after OPEC said it could not reach an agreement about raising crude production.Suppose that OPEC members had agreed to increase production. Use a graph of the oil market to show the effect of this decision on the market equilibrium.
Are these two goods substitutes or complements?
If the tax elasticity of labor supply is 0.20, how much will the quantity of labor supplied in crease in response to(a) A $500 per person income-tax rebate (b) A 4-percent reduction in marginal tax rates
What is her marginal product of labor at one, two, three, and four hours of work?
Suppose instead that output begins at its natural level and that output growth remains constant at the normal rate of 2%. How will the debt-to-GDP ratio change over time?
Perform a logarithmic regression of expenditure on your commodity on income and relative price, first using OLS and then using the option for AR(1) regression. Compare the coefficients and standard errors of the two regressions and comment.
What is the profit maximizing value for production and at what price is this product sold for?
The firm initially produces and sells 100 units of output. If the price elasticity of demand for the firm s product is 2.0, how will featherbedding affect the firm s total demand for labor?
Alice used to work as a teacher but has decided to set up her own cake factory after watching Masterchef. As a teacher Alice earned $50,000 per annum. The cost of materials used to make cakes is equal to $10,000 per annum and in addition.
A bank in a medium sized midwestern city, Firm X, currently charges $1 per transaction at its ATM's. To determine whether to raise price, the bank managers experimented with a number of higher prices(in 25-cen increments)
Explain why the fare reduction on the Kansas City-St Louis route may still be a profitable strategy for Southwest.
Enter the value of the test statistic in the box below (rounded to 2 decimal places). 0 using a t-test with a 5% significance level and enter the critical value in the box
Two equal-sized newspapers have overlap circulation of 10% (10% of the subscribers subscribe to both newspapers). Advertisers are willing to pay $10 to advertise in one newspaper but only $19 to advertise in both, because they're unwilling to pay ..
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