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Assume that the income elasticity of demand for hot dogs is -1.25 and that the income elasticity of demand for lobster is 1.25. Based on the fact that the measure for hot dogs is negative while that for lobster is positive, are these normal or inferior goods? (Hint: You may want to refer to the discussion of normal and inferior goods in Chapter 3.)
Gigantic State University indicate that over the past twenty years tuition and enrollment have both increased. From this information. What are Best National Bank's reserves, needed reserves, and excess reserves.
Show and explain the equation of exchange based upon the income velocity of money. Briefly summarize the conditions under which changes in the supply of money are likely to exert a predictable influence upon aggregate economic activity.
When cities pass laws limiting the rent landlords can charge on apartments, the laws usually apply to existing buildings and exempt any buildings not yet built. Advocates of rent control argue that this exemption ensures that rent control does not di..
The Governor of Arkansas has asked you (her crack economic advisor) to analyze how employment in trucking and poultry processing will be affected if the legislature passes a proposed law that will increase labor cost in both industries by ten percent..
Since its founding in 331 B.C.E., the city of Alexandria has been a center of trade for the Mediterranean countries, as well as the Middle Eastern countries. Part of this is due to geography, but it is also due to the network effect. What is the sour..
In the case of the car wash, suppose that the owner wants to segment his market in terms of the willingness to pay of her customers. She thinks that segmenting the market between car owners who would pay more than $12 per car cash wash and those who ..
Analyze how physicians and hospitals have negotiated service contracts with third party payers. Discuss how fee for service versus managed care models of reimbursement have contributed risk avoidance in their contract negotiations.
In pure competition-marginal revenue
You are the manager of Dunkin Donuts. Almost all of your donut sales are derived from the drive-through window. You know from experience that coffee is a complement for your donuts. The morning newspaper says that a major storm has just destroyed 50 ..
If the expected future spot exchange rate value of the foreign currency decreases, there will be international financial repositioning toward foreign-currency assets, thereby causing the domestic currency to depreciate. If the domestic interest rate ..
A also the new allocation B. Include indifference curves that is consistent with this trade being optimal for both Michael also Tony.
Illustrate what we didn't realize at the time was that our fixed costs were underestimated by at least 30 percent. This means that we will have to adjust our price upward by at least.
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