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A car dealership is considering lowering the price of its min vans to promote sales. However, it worries that this will reduce sales of it station wagon autos. It finds the cross product of demand to be 1.5. Are its concerns legitimate? Explain.
While sitting in your office one evening, you begin to think about some of key microeconomic messages you want to communicate to Board. Find equilibrium quantity and price.
Suppose the Fed reduces the money supply by 5 percent. (a) What happens to the aggregate demand curve? (b) What happens to the level of output and the price level in the short run and in the long run?
Illustrate what price do you think this firm should charge if it wants to maximize its short-run profit.
Illustrate what is the difference between absolute advantage and comparative advantage. If a country has an absolute advantage in both goods.
Suppose that currency in circulation is $500 billion, the amount of checkable deposits is $1,000 billion, excess reserves are $150 billion, and the required reserve ratio on checkable deposits is 10%. Calculate the money supply, the monetary base, th..
Heckscher Ohlin model with two goods (wheat and cloth) and two inputs (land and labor), suppose price of cloth rises by 10% and the price of wheat remains the same. Wheat is land intensive and cloth is labor intensive. the rise in the price of cl..
What type of inflation occurs if workers ask for higher wages and firms must raise product price in order to pay their workers?
Which financing method will result in the greatest number of prisoners surviving the trip
Do you recommend this strategy based on the information he has obtained
Suppose Jason has allocated his entire budget to the purchase of apples and bananas. The marginal utility of the last apple purchased is 10 utils and each apple costs 10 cents.
Suppose ABC were to use the caps as a promotion. How many caps could ABC give away free? At what price would no caps be sold? Calculate the price elasticity of demand at a price of $6?
Explain why global warming is not likely to be solved by the market mechanism alone. Utilize the terms externality and public goods in your explanation.
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