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Explain the relationship between the price elasticity of demand and total revenue. What are the impacts of various forms of elasticities (elastic, inelastic, unit elastic, etc.) on business decisions and strategies to maximize profit? Explain your responses using empirical examples, formulas and graphs.
Is the price elasticity of demand or supply more elastic over a shorter or a longer period of time? Why? Give examples.
What are the impacts of government and market imperfections (failures) on the price elasticities of demand and supply?
Discuss and explain the reasons why net income for a particular period does not necessarily reflect a firm's cash flow during that same period.
a. Calculate the effective rate of protection if there is no duty on steel imports. b. Calculate the effective rate of protection if the importing country imposes a 20% tariff on steel imports. c. Suppose it also takes $4000 worth of copper (besides..
A slowdown in the economy increases unemployment and decreases output. As a result of this action, there will be an increase in the quantity supplied of loanable funds. an increase in supply the of loanable funds.
Globalization and global trade have led to increased competition in world markets and increased allocation of scarce resources. Is it accurate to say that this is contributing to increased consumer surplus and reductions in inflationary pressures.
Which two of the text's possible explanations for increasing wage and salary inequality seem least consistent with the following fact The distribution of earnings has become more unequal within industries (Both goods and service industries) and wi..
Leaders of a small town are tired of looking at a vacant and dilapidated warehouse that sits on a prime piece of real estate. The town finds an investor who purchases the warehouse and promises to renovate the old building and build condominiums.
Explain in words how and why the income sensitivity of the demand for real balances affect the slope of the LM curve. Think of the demand for real balances as L(r,Y)= eY-fr where e and f are positive constants.B) What are the effects of a large s..
Clearly explain how net foreign investment links the market for loanable funds and the market for foreign currency exchange. Make sure you define net foreign investment in your answer.
Throughout the 1990s, the amount of foreign direct investment directed at both developed and developing nations increased dramatically. This trend reflects,An international U.S. based company sets up a production unit in a developing country with ..
Why the price of computers dropped as their power and features has have increased?
If monopolistically competitive firms have some control over their prices, why don't they set price above average total cost so they realize an economic profit in the long run?
if demand for milk is inelastic, but there is an increase in supply, what would happen to milk prices and total revenue of milk salesif floods destory a corn crop and i wanted to estimate the impact of the decrease in the supply of feed crops on t..
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