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A 2 percent increase in the price of milk causes a 4 percent reduction in the quantity demanded of chocolate syrup. What is the cross-price of milk elasticity of demand for chocolate syrup with respect to the price of milk? Are the two goods complements or substitutes?
Suppose that the car manufacturer allows the car dealer to return all unsold cars at the end of a recessionary year. What is the car dealer's profit in a growth year and in a recession? What is their expected profit?
Suppose that an automobile race track is built several miles from a small town. After the construction is completed it is discovered that the heavy roar from the cars regularly disturbs the 2,500 local residents between the hours of 10:00 PM and 1..
If we had a PPF with the goods oil and lumber, how would be measure the MC of oil between points A and B ?
Answer the following Multiple choice questions.
Quantity of pizzas demanded soared he following week from 1 pie an hour to 100 pies an hour. Illustrate what was the price elasticity of demand for Domino's pizza.
Suppose Bob works for Mary as a proofreader. Mary and Bob fall deeply in love, marry and have eight children. Bob stops working for Mary in order to care for the children. What will be the effect on GDP
A city has decided to impose rent controls, and it has established a rent ceiling below the previous equilibrium rental rate for offices throughout the city. How will The quantity of offices that building owners lease change
Mark Martinko has been a class A racquetball payer for the last 5-years, and one of his biggest goals is to own and operate a racquetball facility.
Roi resources currently have an unused gold mine. Mine was shut down four years ago due to depressed price of gold. However ROI are considering re-opening the mine.
Determine the firms optimal advertising-to-sales ratio and if the firms revenues are $50,000, what is its profit-maximizing level of advertising?
Explain why a lump-sum government transfer can entice some workers to stop working (and entices no one to start working) while the Earned Income Tax Credit (EITC) can entice some people who otherwise would not work to start working.
A firm faces the following demand and total cost functions:
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