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How does the PED and PES of commodities affect producers in developing countries?
Explanation of PED (formulaic)
a) few substitutes
b) low proportion of income spent on commodities
a) Enhancing use of substitutes (rubber for example)
b) leading to stagnant/decreased demand
c) dependency of developing countries on commodities means that producers are price takers - and thus have an incentive to enhance output in order to enhance revenue, which enhances supply and lowers the price
In an essay of at least four well-developed paragraphs, discuss U.S. economic policy. Be sure to include the following information in your essay: Compare and contrast the economi
How the above would apply to non-renewable resources such as oil. This has general applicability to any competitive market. The issue here is that potential supply has a finite
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What is the graph of the production possibilities frontiers for the American and Japanese economies if American worker can produce 10 tons of grain a year and Japanese worker can p
#question.Question: Answer all parts (a, b, c, d, e & f). Consider the following insurance market. There are two states of the world, B and G, and two types of consumers, H and L,
Policy Implications: The expansion of the services sector has wider implications for population, employment, and trade prospects of the economy, some of which are as follows:
how do I explain the hicksian and slutsky theory of consumer behaviour in an examination
Use two market diagrams to explain how an increase in state subsidies to public colleges might affect tuition and enrollments in both public and private colleges.
friedman and savage hypothesis
Problem 1 : (a) What are the main assumptions behind the macroeconomic theory of New Classical Economists? (b) Describe the Lucas Supply function and explain its policy imp
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