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Assume that the price of wheat [an important input in the production of pasta] has decreased and at the same time, good economic conditions have increased the income of consumers. If pasta is an inferior good, show graphically and briefly explain what happens to equilibrium price and equilibrium quantity of pasta, holding all other things equal?
In the short run, prices may rise faster than costs. This chapter discusses why this might happen. Suppose that labor and management agree to adjust wages continuously for any changes in the price level. How would such adjustments affect the slope of..
Which of the following best measures how the level of well-being in a country has changed over time?
Assume re is a multiplier effect and that total crowding-out effect is $6 billion. An increase in government purchases of $10 billion will shift aggregate demand to left or right by how much.
Explain how your proposed steps will affect money supply, interest rates, inflation rate, aggregate demand, and output. Provide support for your response.
To critically evaluate Coursera's competitive strategy in relation to MOOCs industry and other traditional higher education providers (e.g., universities). Relevant concepts/theory should be used in the evaluation (e.g., Porter generic strategy or..
The Abner Corporation, a retail seller of television sets, wants to determine how many television sets it must sell to earn a profit of $10,000 per month. The price of each television set is $300, and the average variable cost is $100. What is the re..
A new common stock issue that paid a dividend of $1.76 million last year. The firm's divendends are expected to grow at 6.1 percent, per year, forever. The price of the stock is currently $27.58. The cost of common equity
q.pcc and cdw are two online retailers which compete in an internet market for digital cameras. their products are some
Where is monetary policy stronger? In an open economy, changes in monetary policy affect both interest rates and exchange rates. Comparing the United States and Switzerland, in which country would monetary policy have a more significant effect on GDP..
A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 130 - 0.25P, and the marginal cost of production is $160. Determine the optimal number of units to put i..
This focuses on the relationship between inputs and output. Different production curves are presented. But the intensity of current global competition often requires managers go beyond the traditional production curves.
I hereby offer you $5,001 if both you and my other creditor agree to cancel my debt. If either or both of you decline this offer, I will be legally in default and you will receive $5,000." So, what happens.
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