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Problem:
i) What is meant by ‘own' price elasticity of demand? What factors are likely to affect the size of this elasticity?
ii) A publicly owned bus line is running at a loss. It is suggested that the loss can be reduced by changing the price of the bus rides. Explain why whether the demand for bus rides is elastic or inelastic may affect whether the appropriate change in price is a price increase or a price decrease.
iii) The very existence of market failure suggests government intervention and provision. Discuss.
explain bains model of limit pricing
what is iso-product curve
Define the Production Possibilities Curve and explain the basic economics concepts using the PPC. Explain the factors tht shift the PPC outwards
WHAT IS PPC
#queUse a graphical illustration to describe briefly what the influence of each of the following would be on the market supply of labor:(a) an increase in immigration (b) more wome
Q. Explain about Capacity Utilization? Capacity Utilization: A company or economy's capacity represents maximum amount of output it can produce. Rate of capacity utilization, h
In markets, the invisible hand allocates resources efficiently a. in all cases b. when there are positive externalities, but not when there are negative externalities c. when there
indifference curve for the demand for big macs
what are the various types of cost curves?
Exchange Rate Policy: LERMS, a dual exchange rate system, was introduced in the Budget for 1992-93. Under this system, 40 per cent of foreign exchange earnings were to be sur
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