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You are the manager of a popular shoe company. You know that the advertising elasticity of demand for your product is 0.15. How much will you have to increase advertising in order to increase demand by 10 percent?
Suppose the supply for optometrists is given by LS= -6 + 0.6W, while the demand curve is given by LD= 50-W. Also, assume that the government imposes a payroll tax equal to $8 for each optometrist hired by a firm. a. Find the equilibrium wage and e..
this is a multipart questionfrom an aggregate demand and supply perspective does it matter which programs are
What is the equivalent present value of the following series of payments: $7000 the first year, $6500 the second year, $6000 the third year, $5500 the fourth year, and $5000 the fifth year? The interest rate is 10%, compounded annually. Answer: $2..
The firm need a combination of one unit of capital and two units of labor per hour to make ten units of output. The technology is such that an increase in labor has to be accompanied with an increase in capital, and a decrease in labor has to be a..
let us say that an economy has a consumption function given by c 900 0.9yd where yd is the disposable income. there
Explain how do the principles of microeconomics which you have leaned in this course apply to other nations.
Do you think diminishing marginal utility is a necessary condition to get diminishing MRS? Use your answers for (a), (d), and (e) to justify your answer.
Why does lending short and long present a potential problem for banks and determine two effects that a government guarantee of financial institutions can have.
At the same time, Chinese consumers' incomes have risen. Assume that cars are a norma good. Use a diagram of the supply and demand curves for cars in china to explain what has happened in the Chinese car market.
Tennessee just instituted a state lottery. The initial jackpot is $100,000. If the first week yields no winners, the next week's jackpot goes up, depending on the numbers of previous players who placed the lottery bets. The probability of winning ..
A method commonly used through both governments and private health insurers to control the growth in private health insurers to control the growth in health care expanding are limits to reimbursement to providers.
According to the table above, if the wage rate is $500 and the price of output is $5, how many workers should the company hire?
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