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Suppose a recent and widely circulated medical article reports new benefits of exercise. Simultaneously, the price of the parts needed to make bikes falls. What is the likely effect on the equilibrium price and quantity of exercise bikes sold?
As we know about the own-price elasticity for good x.
Determine which of the following is the best example of two inputs that would exhibit a constant marginal rate of technical substitution?
Explain how is the aggregate supply curve different from the supply curve for a single good like pizza.
Oligopolists have little incentive to introduce expensively new technology and produce new products when they currently are earning large economic profit using existing technology and selling existing products.
Elucidate the difference between GDP and GNP. What adjustments needs to be made to GDP to arrive at GNP.
Assume that, from an initial consumer equilibrium position, the price of good X falls-explain how and why the consumer's relative consumption of two goods will change.
Differentiate between a change in quantity demanded and a change in demand. In the three months before a $1 per pack cigarette tax took effect in Alaska, smokers bought 175 million more cigarettes than during the same period a year earlier.
karls preferences over hamburger (h) and beer (b) are described by the utility function U(h,b)=min(2h,3b). his monthly income is M dollars and he only buys these two goods out of his income. denote the price of hamburgers by Ph and beer by Pb.
The global economy in 2011 appears to be headed into a double-dip recession. Based on your knowledge of aggregate demand and aggregate supply, suggest the reasons and causes for the downward tailspin of the economy.
Why can the distinction between fixed costs and variable costs be made in the short run. Classify the following as fixed or variable costs: advertising expenditures, fuel, interest on company-issued bonds, shipping charges, payments for raw materi..
Explain why does the government support public education when the private sector also provides this service.
Identify each of the following events as: (use a, b, or c to answer the question) a) part of an expansionary fiscal policy b) part of a contractionary fiscal policy c) or not part of fiscal policy i. The corporate income tax rate is increased.
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