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The price elasticity of demand for urban transit fares has been estimated to lie between -0.1 and -0.6. Based on these results, give an economic argument for raising transit fares. What political arguments might local governments and transit authorities encounter in opposition to these economic arguments?
Suppose there are two types of shirts available to Carl: red shirts and black shirts Carl is always willing to exchange three black shirts for one red shirt. Are Carl's preferences monotonic? How do you know?
Explain the likely effects of a U.S. recession on the demand for Canadian exports. What would be the effect on Canadian aggregate demand? Suppose the Bank of Canada viewed its monetary policy as being appropriate (for keeping output close to potentia..
McNair's Wheel of Retailing is a widely used model to describe the way in which retail outlets develop over time. In what ways does this model reflect reality? Can you think of situations where retailers do not follow this model?
Suppose that two UK government bonds have same face values with £100. One has an outstanding maturity of 2.5 years. Its coupon rate is 9.75% and coupons are paid semi-annually.
Why does inflation affect increase in Social Security and or profits. Is this effect a cost of inflation, as article suggests. Why or why not.
Explain whether each of the following scenarios best reflects features of Sweezy, Cournot, Stackelberg, or Bertrand duopoly: Neither manager expects her own output decision to impact the other manager’s output decision. Each manager charges a price t..
The fed choice of monetary policy strategy is
What is the standard deviation for the class? b. What percentile did you score in?
Using the Fisher equation Illustrate what can you infer about expected inflation in Canada also in the United State.
Use a diagram to show the consumer surplus , producer surplus and total surplus of the market for groceries in this small town. Now suppose these small supermarkets successfully form a cartel which behaves like a monopoly, How does this cartel affect..
Create an 3-6 page report, that includes an explanation and/or examples of: A circular flow diagram that includes the government sector. For this part of your paper, you should include a description of the roles that each participant plays in
Explain how the price-specie-flow mechanism operates to maintain balanced trade between countries. What are the assumptions that are critical to the mechanism's successful operation?
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