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A store selling clothing and shoes has monthly revenue of $100,000 from clothing and $50,000 from shoes. Own price elasticity of demand for clothes is -2 and cross price elasticity of demand between clothes and shoes is -0.5. if the store increases the price of clothes by 5%, what will be the change in revenue?
Is there a universal code for ethical business behavior? (Check the December 2005 issue of Harvard Business Review for Up to Code: Does Your Company Meet World-Class Standards? by Lynn Paine, Rohit Deshpande, Joshua D. Margolis, and Kim Eric Bettcher..
Can the government rely on seignorage to finance an ever-increasing fiscal deficit? Explain why or why not. Use the appropriate graphs to illustrate your answer.
John has two job offers when he graduates from college. John views the offers as identical, except for the salary terms. The first offer is at a fixed annual salary of $50,000. The second offer is at a fixed salary of $20,000 plus a possible bonus of..
how should she reallocate her expenditures between the two goods
You find out which your aunt works for a defense manufacturing company which has several defense contracts with the government.
Describe graphically why someone guaranteed an annual salary might choose to work fewer hours than someone who could earn that same amount through hourly pay.
Which of the following could keep a market from ending up in equilibrium?
An apparel manufacturer purchases cotton and other raw materials for the production of shirts. Would the sale of cotton from a cotton mill to the shirt manufacturer be included in the calculation of GDP? Why or why not?
Jim likes to go to church but he also likes to drink wine. unfortunately for jim the consumption of one of these goods reduces the enjoyment of the other. draw the indifference curves that displays jims preferences.
A license to sell another's products or to use another's name in business is called a
Comparative advantage - How companies and countries are becoming specialised in certain industries to compete and expand their businesses. Compare Australia with any other country.
Suppose that you have a von Neumann-Morgenstern utility function given by. Over what range of wealth is this function potentially appropriate to analyze your financial choices under risk? What is your Arrow-Pratt measure of risk attitude?
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