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Katherine advertises to sell cookies for $4 a dozen. She sells 50 dozen, and decides that she can charge more. She raises the price to $6 a dozen and sells 40 dozen. What is the elasticity of demand? Assuming that the elasticity of demand is constant, how many would she sell if the price were $10 a box?
As before pleasing the job, you admit a surprise offer from a competitor. Elucidate how much producer surplus have you earned, if you actually earn $2600 during the month.
Imagine the German parliament adopts a new law that forces landlords to give tenants six months notice before evicting them. Up to the reform standard apartments were rented for 500€ per month. Explain - verbally and graphically - the effect on the h..
Illustrate what does the area EBCD represent. Provide a full explanation of the concept that is shown in that area.
Suppose that the equilibrium real federal funds rate is at 4% and the target rate of inflation is 1 percent. Use the following information and the Taylor rule to calculate the federal funds rate target:
Indentify one group that would benefit from deflation and that would lose. explain why each group would gain or lose from deflation.
Which of the following is a leakage from the circular flow?
The owners decide to begin spending immediately a rather large sum on advertising designed to decrease elasticity.
In class, we discussed the case of a nation experiencing capital flight. Let's imagine the world contains only two nations and that one of them is experiencing capital flight. In the diagram, below trace out the effect of this capital flight on the o..
What are five challenges China’s economy faces as its leadership tries to change the source of growth from exports and public investment to consumption? Why might a slowdown in China’s economy not pose serious problems for the U.S. economy?
NonLegal Seafoods (NS) sells its excellent clam chowder in Boston, New York, and Washington. NS has estimated that the demands in these three markets are respectively QB = 10,000 − 1,000PB, QNY = 20,000 − 2,000PNY and QW = 15,000 − 1,500PW, where qua..
What indifference curves and budget constraints to explain how an individual labor supply is affected by qualifying for the TANF program?
The main economic rationale for a patent system is that quick imitation and commercialization reduces the expected profits of drug companies which thereby diminishes innovative activities. Given market realities, do you think a patent system is truly..
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