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Question 1
A) Elasticity, explain the distinction between price, income and cross price elasticity of demand illustrate your answer with appropriate formulas. Identify and defend the expected signs associated with each form of elasticity.
B) Explain at least five tools available for government intervention to deal with market failure with suitable examples.
q. the federal reserve expands the money supply by 5a. use the theory of liquidity preference to illustrate the impact
Many people say that Microsoft has a near monopoly in the operating system market, but argue that consumers are better off than if there were many competing operating systems. Why might they make such a claim?
A country wants to focus more on domestic production of oil. They choose to focus on domestic production through incentives. Demonstrate graphically possible shift of the gasoline market: Demonstrate graphically possible shift of the ethanol market:
Bayer Schering Pharma AG, Germany owns Alka-Seltzer, which was launched in 1931 and was meant for relief of minor aches, pains, inflammation, fever, headache, heartburn, sour stomach, indigestion, and hangovers. Alka-Seltzer Plus was a spin-off of th..
Go to the internet and find a two news article that discusses balancing the federal budget of the U.S. , summarize key points and post in the Discussions area.
Formulate an empirical economics question that you or a potential employer is interested in answering. What is your economic model; what is the basis for your economic model? What is your econometric model, including a discussion of functional form. ..
What role does integrated marketing communications plan in creating a brand image? How does the media contribute to the development of a brand's image? Why is it important for marketers to understand and appreciate all the various integrated marketin..
Given these profits, Firm 2 want to match Firm 1's price, but Firm 1 does not want to match Firm 2's price. Does wither firm have a dominant strategy? Does this game have a unique, pure strategy Nash equilibrium? Identify all pure- and mixed-strategy..
World trade has grown substantially in the last 60 years. For example, while world output grew at an annual rate of 3.8% per year between 1950 and 2003, world exports grew at 10.8% per year over the same time period. Which of the following help to ex..
In the classical model, the rate of interest is determined by the investment and the saving functions. However, in the Keynesian model, the rate of interest is determined by the equality of aggregate output (GDP) with aggregate expenditure (Y=C+I+G).
One of the objectives of the European Union is to abolish restrictions on the free movement of all factors of production, including labor, services, and capital. Considering the latest financial crisis in Cyprus, would you suggest modifying the EU Ch..
10 years ago Jennifer bought an investment property for $105,000. Over the 10 year period inflation has held consistently at 7% annually. If Jennifer expects a 12%/yr real rate of return, what would she sell the property for today?
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