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Suppose a person with an income of $60,000 per year rents 52 movies per year at a price of $1 per movie. When the person's income rises to $65,000, he or she rents 63 movies per year at the same price per movie. What is the implied income elasticity of demand for movies? Are movies a normal good or an inferior good?
Many people believe trade deficits are a serious problem and need to be eliminated. Explain the three actions the Fed could take to reduce the trade deficit in the U.S., and e
ACNE Corporation currently has a 20% market share in a $15 billion industry (measured by sales revenue). EMCA Corporation currently has a 17% market share in that same industr
During a year of operation, a firm collects $175,000 in revenue and spends $80,000 on raw materials, labor expense, utilities, and rent. The owners of the firm have provided $
Discuss one supply and one demand side factor that determines the number of children a couple chooses to have. Based on your answer what type of programs do you think will be
Would the following events usually lead to capital deepening? Why or why not? A weak economy in which businesses become reluctant to make long-term investments in physical cap
Let R2unrestricted and R2restricted be 0.4366 and 0.4149 respectively. The difference between the unrestricted and the restricted model is that you have imposed two restrict
Explain how it is that in international trade countries with high wages, such as Germany and the US, are able to compete against countries where wages are lower, such as China
Compute price elasticity of demand and supply at the equilibrium price and quantity. Price elasticity of demand is equal to___ _ and price elasticity supply is equal to ____.
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