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Q1. Use this information to answer the next three questions. Sam sells shavers also Alvin sells after cut off. Imagine Sam discovers a new production technique that lowers his costs of production, shifting the supply curve for shavers to the right. This causes the equilibrium price of shavers to fall from $30 to $22 also the equilibrium quantity to increase from 40 to 50 shavers. Illustrate what is the coefficient of price elasticity of demand (Ed) for shavers
Q2. "Patent systems can be worthwhile if induced innovations are important also if the rewards from patents speed them up." Explain why this statement is true.
Compute how this policy affects consumer surplus, and the cost of pollution. Would you recommend this policy.
Report demand graphic as well as independent variables that are relevant to absolute a demand analysis providing a rationale for the selection of the variables.
Discuss the manner in which an analyst would compare the relative profitability of the two potato chip segments.
The market demand and supply function for VCR movie rentals are: QD= 10 - 0.04p and QS 3.8P = 4. Calculate the equilibrium quantity and price.
Compute the equilibrium level of income. Sketch this equilibrium position using a two-dimensional graph.
If the economy is competitive so that factors of production are paid the value of their subsidiary products, what is the share of total income that will go to land.
Explain how high must the deductible be to encourage low-risk behavior
What combination of T and M will you choose? Suppose that the price of day trip rises to $80. How will this change your decision making?
Wilpen plans to charge a wholesale price of $1.65 per can. As the average value of tennis racket is $110, and average household income of consumer is $24,600.
Suppose production price is 20. The firm views that price as beyond its control.
When and where did modern economic growth first happen. What are the major institutional factors that form the foundation for modern economic growth. What do they have in common.
Idea that a country can simultaneously pursue only two of the three following policies: free international-capital flows, monetary policy for domestic stabilization, and a fixed exchange rate.
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