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Suppose that the exchange rate between the Canadian dollar and the Euro is 2 Euros per Canadian dollar.
(i) What is the exchange rate in terms of dollars per Euro?
(ii) What is the price in dollars of a i-phone selling for 250 Euros?
(iii) What is the price in Euros of a computer selling for $1,000 dollars?
Describe the present economic crisis situation in Europe. Why has it been so difficult for the Europeans to find a solution to this problem? Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..
Using the Lerner index, find the price elasticity of demand for Botox and interpret what this value means to total revenue if the price of Botox were increased one percentage point.
Which of the following strategies are used by businesses to capture consumer surplus? Nash equilibria are stable because
The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.
Explain why competitive markets normally lead profit maximizing firms to make choices about resource use that lead to an "efficient" allocation of resources to the market?
A tariff is simply a tax on imports. Use our model of the excise tax (with diagram) to describe why domestic firms request that tariffs be imposed.
An essay on Market imperfection associated with negative externalities.
Assume the airline industry consisted of only 2 firms: American and Texas Air Corp. Let the two firms have identical cost functions, C(q) = 40q. Suppose the demand curve for industry is given by P = 100 - Q and that each firm expects the other to ..
Evaluate the following: The laws of supply and demand cannot apply to the labor market because labor is not a commodity to be bought and sold like machines.
Macroeconomics questions, discuss the short-run and long-run effects, Keynesian model, Distinguish between ongoing demand pull and ongoing cost push inflation.
Problem on standard deviation
Evaluate the range of marginal revenues
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