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Elasticity of Natural Gas
1. Using the elasticity concept explain why the demand for residential natural gas (gas used for heating, cooling, and cooking) is more elastic than the demand for residential electricity.
2. What were some changes of the demand and supply fconditions that lead to the housing market bubble and collapse?
Imagine the opera has a capacity of 3000 seats and that all costs are fixed. If they can discriminate between the two groups, what is optimal price to charge to each group and how many tickets will each group buy?
Suppose the firm decided to lease the large factory, and has put down a non-refundable deposit of 4,000 for that factory. Provide a recommendation concerning which factory firm should lease, and the number of boxes of chalk it should produce.
Elucidate three arious ways in which the Federal Reserve would change the money supply.
Impliment the formula to earnings rather than operating income also use a required return for equity of 9 percent.
Assume that the payouts of the game were changed (if necessary) such that it results in gamblers having a positive expected value.
Illustrate the difference among dollarization, a currency board, and a fixed exchange rate regime. Do you know of any countries that have recently adopted dollarization.
Suppose a production function is given by f(K;L) = KL 2 What combination of labour and capital minimizes the cost of producing any given output?
CEO pay appears to be on the rise again. Also executive pay in the US is about 20 times higher than it is in European countries.
Suppose that you believe that the average rate of inflation over the next 20 years will be 3.5 percent. Would you by the nominal or the inflation-indexed bond?
Keynesian thinking dominated US (and other developed-country) policy-making well into the 1970s, although the "classical" counter-arguments kept up a steady criticism:
Which of the following is a long-run macroeconomic policy goal? If the CPI was 132.5 at the end of 2003 and 140.2 at the end of 2004, the inflation rate over these two years was
Use the firm's isoquant-isocost diagram and the firm's marginal cost curve to explain and illustrate the output and substitution effects of a decrease in the price of labor.
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