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Assume that the price of Smartphone’s increased from $420 to $444 per unit. The manufacturer decides to supply 15,000 units instead of 12,000.
Calculate the price elasticity of supply.
Is supply elastic or inelastic?
Describe at least one factor that determines Price elasticity of supply (note, this is different than PE of Demand).
Hint: To answer this question we need to use the midpoint formula. Assume we have the two ordered pairs (Q1, P1) and (Q2, P2).
q. assume that all young women were channeled into careers as secretaries nurses as well as teachers at the same time
In fact, nominal interest rates do not change significantly in the fourth quarter of the year, due to deliberate Fed policy. Explain and show graphically how the Fed can ensure that nominal interest rates remain stable around Christmas.
What is the discount rate in the banking system? Explain how the Fed manipulates this rate to achieve macroeconomic objectives.
Label aggregate demand curve as AD and aggregate supply curve as AS. Be sure to label axes appropriately. Identify and describe changes in AS-AD graph above that would result from cost-push inflation.
Suppose that the monthly demand function of a particular commodity is given by P= 200 -0.4x and the supply function is P = 0.2x + 80 where x is the number of units demanded and supplied and P is in pesos. Determine the equilibrium prics and quantity
Illustrate what are the benefits also costs to the US economy of labor migration (illegal also legal) into the United States from Mexico.
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The following graph shows the daily market for wine when the tax on sellers set at $0 per bottle. Suppose the government institutes a tax of $5.80 per bottle, to be paid by the seller. (Hint: To see the impact of the tax, enter the value of the tax ..
Illustrate what is the firm's average total cost of producing 100 units. Illustrate what is the firm's average total cost of producing 101 units.
Which of the following events would unambiguously cause a decrease in the equilibrium price of computers?
shutdown point case average variable cost market price lt average total costnbspif the market price in the above
q1. a good example of an oligopoly market structure is the airline industry. there are not many airlines in the
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