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When a university bookstore prices chemistry textbook at $200 each, it generally sells 120 books per month. If it lowers the price to $160, sales increase to 160 books per month. Given this information, we know that the price elasticity of demand for chemistry books is about
A. 1.29, and a decrease in price from $200 to $160 results in an increase in total revenue.
B. 1.29, and a decrease in price from $200 to $160 results in a decrease in total revenue.
C. 0.78, and a decrease in price from $200 to $160 results in an increase in total revenue.
D. 0.78, and a decrease in price from $200 to $160 results in a decrease in total revenue.
The college has annual fixed costs of $10 million, also the variable cost for every additional student is $5,000.
Explain how manager could improve and become more "well rounded". Also include what this manager did well. Include observations about the managerial environment.
Many would argue that in a capitalistic economy, the government cannot provide goods and services as efficiently as the private sector. For example, most arguments for and against the Affordable Health Care Act centre on the efficiency of the governm..
Use a model of the money market to explain why changes in nominal or money GDP are associated with changes in interest rates.
Card and Krueger's paper (AER 1994, "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania") uses a difference-in-difference identification strategy to identify the causal effect of a minimum wage increas..
Corporate bonds are often purchased as a conservative investment strategy. What is the difference between a Coupon Bond and a Zero Interest bond? Identify at least three (3) possible effects of an increase in the money supply on interest rates
We say that the demand for labor is a derived demand because:
Suppose you win a lottery, and your after-tax gain is $20,000 per year until you retire. As a result, you decide to work part time at 35 hours per week in your old job instead of the usual 40 hours per week. Calculate the annual income effect on hour..
What performance % would you use to trigger executive bonuses for that year.
Jim’s utility function is U(x, y) = xy. Jerry’s utility function is U(x, y) = 1, 000xy + 2, 000. Tammy’s utility function is U(x, y) = xy(1 − xy). Oral’s utility function is U(x, y) = −1/(10+ 2xy). Who has the same preferences as Jim? Who has the sam..
In Japan, potential GDP is 600 trillion yen (¥) and the table below shows Japan’s aggregate demand and short-run aggregate supply schedule. Draw a graph of the aggregate demand curve and the short-run aggregate supply curve. What is the short-run equ..
Each firm in a cartel has an incentive to chisel because market price exceeds, Under the cartel model, each firm produces where
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