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How are the following calculations are made?
When income increased by 10%, the quantity of memberships of athletic clubs increased by 15 percent, the quantity demanded of spring water increased by 5 percent, and the quantity demanded of soft drinks decreased by 2 percent. Use the
a. Is club membership a normal or an inferior good?
b. Is demand for club membership income elastic or income inelastic?
c. Is spring water a normal or an inferior good?
d. Is soft drink a normal or an inferior good?
Explain how each of the following scenarios would cause the aggregate demand, short-run aggregate supply, and/or long-run aggregate supply.
Airway Express has evening flight from Los Angeles to New York with average of 80 passengers and return flight the next afternoon with average of 50 passengers. Should the airline remain in business?
If the US population is growing at .88% per year, while GDP is growing at 2.5% per year, and if these growth rates remain constant for the next five years, what will be the population and GDP levels in five years? Please show your work.
What would happen to the amount of economic investment made today if firms expected the future returns to such investment to be very low ?
During the 1990s, Western Europe experienced high rates of unemployment, while in the US, rate of unemployment remained far below natural rate.
Read the article "FDI into Africa on the up" from Ernst and Young and discuss on the following questions by writing 1 and half pages with proper citation with own words. § What is the impact of increasing FDI into Africa on the global economy? § If y..
Glassware violated which of the subsiquent provision(s) of the Clayton Act and Robinson-Patman Act.
Make a paper analyzing the current market conditions of the Airline industry including a supply and demand analysis that answers these questions:
Is the price elasticity of demand elastic or inelastic for that good or service. Explain how should the company alter the price of the good or service to increase revenues.
Illustrate what is the elasticity of demand for the product that is produced by the company.
Find the optimal level of inputs L* and K* that minimize the cost of producing Q0. What is the cost of production associated to L* and K*?
Explain how a consumer as well a business in the perfectly competitive arena maximize utility, discussing any similarities.
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