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Assume the elasticity of demand (Ed) at a price of $11 is 3.5, while the Ed at a price of $6 is equal to 1, while the Ed of a price of $3 is = .50. Explain/interpret what each of those answers means. Be thorough and be sure to discuss the impact that a change in the price has on the change in the quantity.
q.the central bank of the fictitious country omega raises bank reserves by 100. what effect will the increase in bank
Efficiency wages are
Illustrate what do you think will be the impact of the federal reserve bank $600 billion purchase. Apply ALL of your knowledge on MONETARY POLICY to answer this question.
Michael spends $10 a month on both Pez dispensers and Superman action. His marginal-utility-to-price ratio for the Pez dispensers is 40.
Good People is currently selling beer for $3 per pint. The marginal cost of a pint is $.50. If we raise the price of the beer to $5, what percentage of customers must be maintained to ensure Good People at least stays even with the proposed price inc..
Firms in monopolistic competition would
The income elasticity of demand for your firm’s product is estimated to be 0.75. A recent report in The Wall Street Journal says that national income is expected to decline by 3 percent this year. What should you do with your stock of inventories?
After viewing the video clip from Cool Hand Luke, first consider how marginal benefits and marginal costs fit in to Luke’s decision, and how the concept of diminishing marginal utility is at work as Luke eats more and more eggs. What is driving his m..
Suppose Microsoft chooses to produce 80 million copies of software per year and sells copies of software to retailers at $199 per copy. Now consider problem of a retailer like Circuit City or Best Buy.
Between two production technologies firm can choose a new product line. If it installs expertise 1, it's annually costs.
Consider the following production function. Y=K^5 (AN)^.5 , where both the population and the pool of labor are growing by rate n=.07, the capital stock is deprecciating at a rate of d= .03, and A is normalized to 1. What is the form of this producti..
What role did Red cloud play in the factional splits that occurred in the late 1860s and 1870s.
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