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Explain why elasticity of demand is such an important concept to marketers who sell a "commodity" product. What pricing strategies would you recommend under these circumstances? Justify your recommedations.
Suppose that Al, Beth, Carol, David, and Ed receive incomes of $500, $250, $125, $75, and $50, respectively. Create and interpret a Lorenz particular level of total income.
If gross investment is not large enough to replace capital that depreciates in particular year, is net investment greater or less than zero? What happens to our production possibilities?
What is a budget constraint? How does a budget constraint explain consumer choices when used in conjunction with indifference curves?
what do they need to set the monetary base to? What does this mean? How will the Fed do this?
Suppose a single parent can work up to 16 hours per day at a wage rate of $10 per hour. Various income maintenance programs have been developed to assure a minimum level of income for low-income families, such as AFDC (Aid to Families with Depende..
A company produces two main products: electronic control device3s and specialty microchips. The average total cost of producing a microchip is $300; the firm sells the chips to other high-tech manufacturers for $550. Should the company produce con..
Explain the effect of such a shock on the equilibrium of the DAD-DAS model - Suppose that at time t-1 inflation is zero and there were no shocks in the economy.
Suppose a new technology is developed that increases investment demand in both a closed economy and in a small open economy that are in other ways identical. Holding other factors constant, will the quantity of investment spending increase more
1 explain why the aggregate supply curve becomes increasingly steeply sloped at levels of rgdp near full employment and
You purchased a commercial warehouse in March 2010. The cost of property was $200,000 which includes $25,000 for the value of the land. Determine the amount of depreciation that is allowed during the first year of ownership.
Illustrate what are the pros and cons of a company that competes in a global environment. How do you think this has affected the U. S. economy and the global economy.
Derive the AS relationship for this economy and what are the natural rate of the unemployment and natural level of output and derive the IS relationship for this economy.
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