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Identify and discuss at least two economic phenomena for which the linear-in-parameters/linear-in-variables regression model may not be appropriate (besides any mentioned in the text). Select an economic phenomenon and determine which of the models discussed in this chapter would be most appropriate to apply to the phenomena in question. Explain your rationale
Illustrate what is the market elasticity of demand. What is your elasticity of demand in this Cournot oligopoly.
Illustrate what will be the new equilibrium price, if the government puts a 15 cent per tax on the candy.
Assuming the most typical shapes of the demand and supply curves, which of the following could lead to an increase in the current equilibrium price for personal computers?
q1. immediately following the attack on the united states on september 11 2001 the stock plunged and many observers
Imagine a simple economy of Fredonia that uses gold as its currency (only gold, not gold backed paper). Suppose that Fredonia finds itself deeply in debt and that its creditors who all live in the country of Sylvania demand the repayment of debt in g..
What will the new Lerner Index be after some time with the new demand curve and market price of 30? What firms survive the new demand curve in the industry and why?
Find out the purchase price to gain thirteen percent compounded semiannually.
If the CD is cashed in before September 1, 2006, you lose all interest for the first three months and the interest rate is reduced to 1.9%, compounded monthly, after the first three months.
Governments often need to raise revenues to fund public projects like schools, road maintenance, parks, etc. One way governments raise revenue is to place taxes on the sale of certain goods. Suppose a government is debating whether to raise taxes on ..
A purely competitive wheat farmer can sell any wheat he grows for $30 every bushel. His five acres of land
The moral hazard is the degree of risk that the insurance company is taking in order to provide coverage on the individual.
Explain how each barrier can foster either monopoly or oligopoly. What barriers, if any, do you feel give rise to monopoly that will allow the government to become involved to protect consumers?
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