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Elasticity vs inelasticity
Elasticity = (% Change in Quantity)/(% Change in Price)
Suppose the price of apples rises from $3 a pound to $3.45 and your consumption of apples drops from 30 pounds of apples a month to 21 pounds of apples. Calculate your price elasticity of demand of apples.
Explain how does classical economics elucidate its confidence in the ability of natural forces to return the economy to its potential level of real GDP?
Suppose you are an advisor to President Obama. Illustrate what fiscal policies would you put in place.
A paper detailing explain why the US dollar might be replaced as the nation's reserve currency by the Euro or the IMF's Special Drawing Rights.
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Rachel utility function is given by U= I 1/2 , where I represents annual income in thousands of dollars. Assume Rachel is currently earning income of $23,000 (I =23) and can earn that income next year with certainty.
Explain all your answers below clearly, including brief definitions of each term.
Compute the effective price reduction resulting from the coupon promotion.
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If the indurtry can pay only one of the six salary levels shown, which should it choose? How many workers will it employ?
Elucidate the own price elasticity for ATM fees charged to non-customers. At the current ATM fee, should you raise or lower your ATM fees.
Draw a diagram showing the current situation of the firm. In addition to the above information, suppose the price of the output is $13/unit, if the firm wants to maximize its profit, what should it do? Explain in detail with the aid of a diagram.
Assume which is more difficult to monitor workers at larger firms than at smaller firms. According to the delayed payment compensation model,
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