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Provide an example of a good or service with inelastic demand and another good or service with elastic demand. What factors caused the difference in elasticity between the 2 goods.
Using the simple household model C=[C(0)]+[C(1)]*(Y-t), assume that C(0) is $1000, taxes are $100, and C(1) is .5. What would be the impact on consumption spending if household incomes were to rise by $500? (Ignore the multiplier effects here.) What ..
What would be the substitution effect and the income effect of a wage increase?
Marginal cost of production is constant and is $10, and there are no fixed costs. What is the profit maximizing level of output? What profit maximizing price will be charged? How much profit will be made if profit is maximized?
If one state is suffering from acid rain as a result of sulfur dioxide emissions from the industries in a neighboring state, then: When the federal government borrows money, the resulting ______ in interest rates will lead private investment to _____..
Is this change in Q and Pb is due to a shift in the demand or supply schedule or due to a movement along the demand or supply schedule?
Compare between EITC program and cash transfer welfare program in the standard income leisure model. Explain using the income-leisure model when an unemployment benefit program is successful. Do you agree that welfare programs must mandate working so..
(a) What are the three alternatives available to Jay? (b) Evaluate the cost for each of the alternatives. (c) What do you recommend that Jay do?
What is the decision facing GetFeedback? what factors are important in understanding this decision situation? what are the alternatives? What decision(s) do you recommend? What are some ways to implement your recommendation?
Determine the net present value for a project that costs $78,000 and would yield after-tax cash flows of $12,000 the first year, $14,000
Domar properties plc have a site covering 20,000 meters square on which they wanted to build a mixed estate of 2- & 4-bedroom houses. The 2-bedroom houses will each occupy a plot of 60 meters square and will be sold at a profit of $15,000. On average..
Which of the following would increase the natural rate of unemployment?
An estimated 1.8 million students take on student loans to pay ever-rising tuition and room and board (The New York Times, April 17, 2009). It is also known that the average cumulative debt of recent college graduates is about $20,100. Let the cumula..
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