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Sample Question: Price Elasticity of Demand
1. Give examples of how price elasticity of demand affects your purchasing decision and/or your firmâ??s pricing decision?
2. Discuss several goods you either buy or sell at your workplace that are price elastic. Explain
Social Dynamo Corporation earned profits last year of $49 million on sales of $500 million. During the same period, its major competitor - EIO Corp.- enjoyed sales of $490 million and earned profits of $52 million.
Leisure-Time boats is a manufacturer of mid-to-high end boats with 12 sales territories throughout the U.S. Sales are generated by salespeople in each territory who develop relationships with boating distributors and related retailers.
Which of the following goods or services would be most likely to be subject to (1) external economies of scale and (2) dynamic increasing returns? Describe your answers.
Reflecting back on what you learned about sustainable management practices throughout this quarter; determine 5 activities that illustrate sustainable management of resources that you pursue in your everyday life.
If the indurtry can pay only one of the six salary levels shown, which should it choose? How many workers will it employ?
How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.
Illustrate each of the following events using a demand and supply diagram for bananas.
Illustrate graphically the impact in the short run and the long run of a Federal Reserve decision to increase open-market purchases.
Economic forecasters predicted that consumption also GDP would increase because of higher refunds on income taxes.
What is the firm's cost function when the cost of pollution certificates is included? What is the firm's marginal cost function when the cost of pollution certificates is included? Derive the firm's supply function.
Illustrate and explain the interaction of households, businesses, government and global markets in the circular flow of economic activity.
Illustrate what do each of the following seek if they pursue their own self interest: consumers, resource owners, and business firms.
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