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Scenario:
The subway fare in your town has just been increased from a current level of 50 cents to $1.00 per ride. As a result, the transit authority notes a decline in ridership of 30 percent.
Questions:
a. Compute the price elasticity of demand for subway rides.
b. If the transit authority reduces the fare back to 50 cents, what impact would you expect on the ridership? Why?
Using two graphs, show consumer surplus before and after government intervention.
Stock registers an unexpected price decrease, Evaluate the value of your delta-hedged portfolio.
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The details about three identical firms operating in Cournot competition are given. The demand curve with marginal revenue, profit maximization, optimum quantity, total demand and market price related questions are answered.
Developing a regression model with Sample Regression Model
Neolithic Revolution
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Provide the Gilbert's choices of both Bordeaux and yogurt under the following circumstances (Consider each separately):
Calculate the net present value and benefit-cost ratio for four different discount rates
The Business Cycle is the short-term fluctuations in the economy relative to the long-term trend in output; the recurring and fluctuating levels of the GDP growth rate over time.
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