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When Commonwealth Edison (electric utility) needs more revenues, it petitions the Illinois Commerce Commission to allow it to raise its rates. What does this tell you about the type of price elasticity of demand within this price region for Commonwealth Edison Service?
Suppose that a 20% decrease in the price of coffee leads to a 15% decrease in the quantity of coffee supplied. Compute and give the value of the price elasticity of supply. Determine if supply is price elastic, price inelastic, or unit-elastic.
Assume you have 5 uneven payments to make and you want to know what you will be paying at 10% per payment (year) on this uneven payment.
A monopoly firm faces a demand curve given by the following equation: P = $500 − 10Q, where Q equals quantity sold per day. Its marginal cost curve is MC = $100 per day. Assume that the firm faces no fixed cost. Suppose a tax of $1,000 per day is imp..
Consider Solow's model when the production function is Y = 1000K0.3 L0.7 . The population growth rate is 2%, ? = 0.1 is the depreciation rate and s = 0.25 is the savings rate. Suppose this economy was in its steady state when unexpectedly Total Facto..
q.suppose you are the manager of a home-building company and the government is considering eliminating the
Assume the market for pencils is competitive and originally in equilibrium. As a result of an increase in the price of graphite, the supply of pencils decreases. What is true of the new equilibrium?
A technology company is planning on introducing a new fitness watch to the market. Rush the fitness watch to market by paying overtime and speeding up testing. The company will pay $5 million initially and will receive $3 million in annual profit fro..
Sage has $80 to spend this month on CDs and/or DVDs. A CD costs $10 and a DVD costs $20. What is the opportunity cost of the second DVD? Indicate on your graph the combination point showing Jane consuming 8 CDs and 4 DVDs (label it A). What can you s..
Indicate the different ways an individual could forecast his or her weight 10 years from now. Do these methods change based upon whether the individual is 5, 14, 24, or 45 years old? If so why
A realtor wants to estimate the effect of house size on house value. they collect data on house size and house value and run a regression of house value(in $)House Value, on house size(in square feet),House Size. The regression yields a positive esti..
Was the welfare reform the right approach to poverty? Is street crime more harmful than white-collar crime?
The recent recession seems to be ending, the number of people with jobs is expanding, and it appears that wage levels are beginning to increase. Against that background, assume that you own a perfectly competitive company that makes a popular line of..
Participate in a discussion with your classmates regarding how international trade affects our lives. You have a big stake in the politics of free trade versus international trade protections. As a buyer, your self-interest is hurt by tariffs and quo..
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