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Suppose an office supply store increased its price of file folders from $.79/box to $.99/box and the quantity demanded decreased from 85 boxes/month to 83 boxes/month. What is the price elasticity of demand for file folders? Is the demand elastic, unit elastic or inelastic? Calculate the change in total revenue as a result of the price increase. What happens to the total revenue generated for the office supply store as a result of the price increase, and how does it show the relationship between elasticity and total revenue? If the price of a product were increased from $25 to $26 and quantity demanded fell from 10 to 9, calculate the price elasticity of demand. Is the demand elastic, unit elastic or inelastic. Calculate the change in total revenue as a result of the price increase. What happens to the total revenue generated for the office supply store as a result of the price increase, and how does it show the relationship between elasticity and total revenue?
Several questions in this problem set are based on the 8/19/12 Wall Street Journal article "Cartel Pushes Up Price of Rubber." This article is at the end of the module on Antitrust Policy. Try to read the entire article carefully first.. What challen..
Colleagues, assess and explain a major trade regulation or policy of the United States (please choose a regulation or policy other than one already discussed by your classmates). What purpose(s) does the regulation or policy serve?
q.go to the st. louis fed website also total following assignment. scroll down and select money stock m1ns. i want you
The financial crisis that occurred 2008-2010 amounted to a increased debt ratio in many countries. Write the debt ratio formula. Discuss in detail what factors that tend to increase or decrease the debt ratio under a financial crisis.
Describe aggregate supply from a classical economist’s perspective. P(t) = US$2 per coconut; E(t) = MX$1 per US$; P ROW(t) = MX$3 per coconut. a. What is the real exchange rate? b. Does purchasing power parity hold? Give three reasons why the purcha..
Calculate the percentage growth rate in real GNP per capita in each of the years 1996 through 2002 from the previous year, using the definition of growth rate.
What is each fisherman's profit-maximizing output now. Find the market price and the total output.
The R&D and development costs for the new drug were $1.2B. Variable costs are estimated at $25 per pill and allocated fixed costs are estimated to be $8 million per year. For pricing let’s assume that the average channel margins based on retail price..
Using present value analysis math, discuss the cost and benefit of paying for 4 years of college. Make any assumptions you want about the market interest rates. Use math and discuss. Is going to college worth it?
Critically discuss the following statement: Without a well-enforced command-and-control regulatory structure, society will not take the necessary steps toward a sustainable future.
Suppose government spending increases in a closed economy. Would the effect on aggregate demand be larger if the Bank of Canada took no action in response, or if the Bank were committed to maintaining a fixed interest rate.
One key assumption lying behind the policy irrelevance proposition is that
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