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Suppose that the cross-price elasticity of the demand for beer with respect to the price of wine is +0.30 in Sweeden, but -0.25 in Luxemborg. Which of the following is true:
a. Wine is a complement for wine in Sweeden and Luxemborg
b. Wine is a substitute for wine in Sweeden and Luxemborg
c. Wine is a complement for wine in Sweeden and a substitute in Luxemborg
d. Wine is a substitute for wine in Sweeden and a complement in Luxemborg
Use a supply and demand graph to show the likely impact of subsidized student loans on the price and quantity of student enrolments. Are there other ways in which the subsidies might distort the incentives of university administrators?
After reading Psalm 55:21, discuss the freedom of speech section of the First Amendment to the U.S. Constitution and its protection and permitted regulation, of commercial and political speech engaged in by business, including justifications for such..
Suppose Australia is a capital (K)-abundant country, and Sri-Lanka is a labor (L)-abundant country. Both produce labor and capital intensive goods with the same technology. Which of the two countries has a higher relative wage, w/r, before trade? Wou..
Economic Projections You have just been appointed the new Economic Advisor to the U.S. Government and have been asked to develop an economic series of projections for the U.S. domestic economy for the next year. Outline your new forecast based on cur..
If collusion is not allowed, what kind of market arrangement do you think is likely to result from competitive interactions among these four firms? Calculate the profits of these firms in either case (a and b).
In May 2010, the Reed Job Index reported that demand for new workers was growing, but wage and salary on offer of new jobs was declining. Economists argued this was strong evidence that the economy had entered the recovery phase of the business cycle..
Suppose the government increases expenditures by 120 billion dollars while increasing taxes by 120 billion dollars, and mpc = 0.8. Assume that there is no crowing out, or acceleration effects. What is the combined effect of these changes on GDP? In o..
The following type of report occurs each quarter as firms announce their earnings: Weaker-than-expected results last week from Exxon Mobil have set a gloomy backcloth for results on Thursday from Royal Dutch/Shell. The company said its profit margins..
At what point in the development cycle is venture capital usually available, and what must a business demonstrate to be considered for cash infusions by venture capitalists?
Will developed economies and developing economies converge? What does economic theory say with respect to this topic? Does existing evidence support or refute this theory?
determinants of supply and demand, graph the supply and demand curves and illustrate the resulting change in the equilibrium price and quantity.
a design-build engineering firm completed a pipeline project wherein the company realized a profit of 2.3 million in 1
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