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Two friends who are addicted to Starbuck’s iced coffee were overheard talking. John said “No matter what the price of iced coffee is or will be, I will buy 4 cups a day.” His friend, Peter said “if Starbucks raises the price of a tall iced coffee above the current $1.95, I will not buy any coffee.”
What is the price elasticity of demand for iced coffee for John and for Peter?
If congress decides to reduce the tax paid per pack paid by sellers of cigarettes other things being equal the cost of cigarettes will fall.
q. db - does microsoft have a monopoly over operating systems?former dean of the sloan school of management at
Boris budgets $40 week for his morning coffee with milk. He likes it only if it is prepared with 3 parts coffee, 2 part milk U= min{3/2M,C}. Coffee costs $2/oz, milk $1/ oz. (For the questions below, show your work briefly) How much coffee and how mu..
Illustrate what would happens to the equilibrium price and quantity. The widget firm in Springfield is competitive,with numerous buyers and sellers.
How would an economist respond to the opinions expressed in this documentary? What aspects of the current food system would an economist view as a positive development?
Conduct an analysis of a recent article and provide your evaluation and outcome expectations in an articulate and informative paper that discusses: Identification of three to five macroeconomic indices. Definition and explanation of the indices, e.g...
Suppose that there are 10 million unemployed workers in a country and 90 million employed workers. Suppose we know that the fraction of workers who lose their jobs in a given month is .02 and the probability that unemployed workers find work in a giv..
Public health information can be broadcast at a cost of $100. Public health information is a pure public good, in that many people can use the information simultaneously and preventing people from using the information is very difficult. What are the..
If market inverse demand is p(Q)=a-bQ and the firm produces according to TC(Q)=cQ+dQ2, determine the firm's optimal quantity, price and profit level. (Assume that a,b,c,d >0.) What conditions on b and d must hold in equilibrium?
Assume the interest rate is 5.75 %. how much do you have to deposit each year make sure that 8,000 can be withdrawn for the 4 years?
Explain and discuss view that at beginning of 21st century in US, key macro-finance ratios were such that a decade of negligible real returns to stocks was in prospect. Are key financial ratios useful for forecasting returns to major asset classes..
A newspaper has a monopoly on the local news market in a town. The market demand is given by P=1.70-Q/20,000, making the marginal revenue MR=1.70-Q/10,000. The marginal cost is constant at equal to 0.80. The fixed cost is 2,000. So, the total cost is..
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