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1. Suppose the demand for a product is given by QD = 2000 - 25P.
a) Calculate the Price Elasticity of Demand when the price is $30.
b) What price should the firm charge if it wants to maximize its revenue?
c) Over what price range is demand elastic?
Relation between nominal interest rate, real interest rate and inflation If we denote the nominal interest rate by R, the real rate by r and the expected inflation by p e then
The tax-adjusted Multiplier and the balanced budget Multiplier are explained below: Taxes act as drag on the multiplier effect of government expenditure, because they represent
Types of Taxes Which a Government can impose on the citizens are as follows: With the theory of taxation covered, we can now move towards the actual menu of the taxes the gover
what is static and dynamic multiplier in keynesian theory?
Why is private property, and theand the protection of property rights , so critical to the success of the market system ? How do property rights encourage cooperation?
i want an answer for my q Question 3 (5 marks) Most studies of firms’ long run costs have found that average costs decline as firms produce increasingly larger output levels (eco
multiplier static and dynamic
The Neoclassical thinking that assumes that all firms are established with the intention of making profit has been challenged by the managerial discretion models. How successful ha
Four different measures of GDP Using circular flow model we see that there are 4 equivalent ways of measuring GDP: Using the definition: market value of all finished goo
Q. Money market with inflation and constant money supply growth? If π M = π and π e = π, both IS- and LM-curve will be fixed. Figure: The money market with inflatio
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