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If the price of 35 inch HDTVs declines by 20% and the total revenue from the sale of 35 inch HDTVs rises, what can you say about the price elasticity of demand for 35 inch HDTVs? Will this price reduction necessarily lead to an increase in profits for manufacturers of HDTVs?
Explain why.
What could the federal reserve system Fed do in 2000 in order to bring the economy back to full employment ? What did the Fed actually do? explain
Assume that the income elasticity of demand for tickets is +2.5. Also assume that the average household in the community makes $20,000 per year and that about 6000 tickets are sold per year. Now let the average household income go up to about $22,000..
Jane obtains utility W1/2 from wealth W. Jane has $100, but there is a 25% chance she will require surgery which costs $64. calculate the expected value of Jane's wealth. calculate Jane's expected utility. what is Jane's certainty equivalent?
Treasury funds national debt by a mix of T-bills, T-notes, and T-bonds with maturities of 10-30 years. During President Clinton's administration Treasury proposed that by issuing more T-bills
If a deposit outflow of $50 million occurs, which balance sheet would a bank rather have initially, the balance sheet of the following balance sheet.
The demand curve for haircuts at Terry Bernard's Hair Design is: Where Q is the number of cuts per week and P is the price of a haircut. Terry is considering raising her price above the current price of $15. Terry is unwilling to raise price if the p..
q.luella has to pay an interest rate of 50 to borrow. she only gets an interest rate of 5 if she lends. she is
Explain why industry expansion in response to rising prices will put even more upward pressure on price in the cattle price cycle. What happens to finally cause the turnaround at the peak of the cattle price cycle?
Should the antitrust authorities stop more corporate mergers than they currently do? What are some of the pros and cons?
You own a golf course in Florida and you need to determine how many golf carts you need to buy to maximize profits. What is the user cost of capital and what is it expressed in? Now suppose the (local) government with all their financial shortfalls e..
The market demand for woozles is given by: There is only one available technology, and it is employed by all producers actual and potential. It implies the following average cost function:
Use indifference curve analysis to show how the Social Security pension system can reduce annual consumption for some workers who have a strong preference for current versus future consumption.
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