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If the price elasticity of demand for a product is 1 in absolute value, and the price elasticity of supply of the same product is 1, what is the predicted percent change in price from a 1 percent increase in demand?
A) a rise in price of 0.5 percent B) a rise in price of 2 percent C) a fall in price of 0.5 percent D) a fall in price of 2 percent.
You, as chairman of the Fed (congratulations), are considering whether the monetary base or the interest rate should be used as a target. What information do you need to have to make an informed decision? When would each be a good (or bad) choice?
Boris budgets $9 weekly for his morning coffee with milk. He likes it if it is prepared with 4 parts coffee, 1 part milk. (Milk and coffee are perfect complements here). Coffee costs $1/oz, and milk $0.5/oz. Draw his budget constraint and indifferenc..
Mary's credit card situation is out of control because she cannot afford to make her monthly payments. She has three credit cards with the following loan balances and APRs: Card 1, $4,300, 19%; Card 2, $5,500, 23%; and Card 3, $3,400, 17%. Interest c..
Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, the market for four-wheel-drive tractors consisted of five firms. The market was highly concentrated, with a Herfindahl-Hirschman inde..
Assume a product as a reliability represented by an exponential distribution with beta = 75 (weeks). What is the 50% life expectancy e.g. the length of time where the reliability = 50%?
The US government could not pass its annual budget. As a result, the US government has partially shut-down: roughly about 800000 federal employees of non-essential services are out of work
The direct and excess burdens from an excise tax are greater the less elastic is demand in the market. Real national income can never exceed its potential level.
Write a 2 page essay describing what life was like in the Great Depression 1929-1941 with a focus on the important events and data which characterized economic conditions of that time period. Cite at least 4 outside sources of supporting information/..
Describe the difference(s) between extrinsic and intrinsic outcomes. Referring to Table 6-2 in the text, which of the outcomes are most appealing to you? How do you think your preferences will change as you get older?
Calculate and compare the profit under each flight. Should the airline replace its night flight from Los Angeles with a morning flight?
Suppose that the monthly demand function of a particular commodity is given by P= 200 -0.4x and the supply function is P = 0.2x + 80 where x is the number of units demanded and supplied and P is in pesos. Determine the equilibrium prics and quantity
A fashion clothing retail company venturing into online sales for the first time hopes to increase sales revenues overall, but are also concerned that their online sales maybe at the expense of sales in their existing outlets. They are also consideri..
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