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Assume an inferior good. Suppose there is an increase in income and a decrease in consumer taste for that good. Additionally, consumers expect an increase in the price of this good. Furthermore, the government has increased the regulations for producing this good thus causing a shutdown of numerous firms that produced this good.
Predict what will happen to the equilibrium price and quantity of this good.
Unlike train and bus travel, there are no discount for students or retired people for airline tickets. Why airline companies do not give discount to students? As a student wit
Using two-part pricing , what will be the entry (membership) fee? What will be the per-unit fee? Compute the profit earned from a typical consumer with two-part pricing. Hint:
In December 1994 a man in Ohio decided to deposit all of the 8 million pennies he’d been saving for nearly 65 years. With a reserve requirement of 12.5 percent, what will be t
Prior to opening of trade shoes cost $50 per pair in U.S. and $10 per pair in China. If the price of shoes in U.S. were to fall to $20, U.S. demand of shoes would increase to
A material handling system was purchased 3 years ago for $120,537. Two years ago it required substantial upgrading at a cost of $14,340. It once again is requiring an upgradin
Wage contracts are associated with: Consider the Taylor rule. If the inflation rate in the economy were to fall by 2% below the target inflation rate, the target federal funds
Which of explanatory variables in regression are statistically significant, Elucidate. How much of total variation in pie sales does regression model elucidate.
Political Instability Abroad Suppose that political instability in other countries makes people fear for the value of their assets in these countries so that they desire to pu
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