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Your income rises from $1,000 a year to $10,000 and your purchases of beer increase from 10 to 20. Assume a linear relationship between income and quantity demanded. What number below most closely approximates your income elasticity at income equals $4,500?
Reflect on the changes in U.S. manufacturing over the last half century. Why did the United States lose so many jobs? What impact did that job loss have on the U.S. economy and on the economies of countries like China and Mexico that have been the re..
You've just won the state lottery and will receive 20 annual payments of $70,000, with the first payment arriving 1 year from today. It is easy for you to borrow or lend on the capital market at an interest rate of 8% per year. If someone offered to ..
Illustrate what would be the most optimal number of spaces, and Illustrate what are these corresponding prices.
Suppose that the demand in a particular industry is given by Qd = 100 – 2P. When the market price in the industry is $10 per unit, what is the total quantity demanded in the industry? If you assume that each of the four largest firms in the industry ..
Suppose two firms sell an homogeneous product; they compete in prices. Their respective marginal costs are MC1(q) = 10 and MC2(q) = 20. Find the prices that form equilibrium (for simplicity and reality, assume that prices are quoted in units no small..
Consider a small open economy operating a fixed exchange rate. Compare the effects on domestic real GDP of an increase in government spending under each of the following circumstances:
If there are no fixed costs of production, the q that solves the firm’s first-order condition is
Illustrate what share of GDP is composed of consumption. Illustrate what share of GDP is composed of investment.
The manager of a corporate division faces the posibility of an audit every year. She prefers to spend time preparing if she will be audited; otherwise, she would prefer to invest her time elsewhere.
Because real investment by foreigners expands a country’s capital stock and hence presumably its output and income, why should any country consider restricting foreign investment?
Identify the nature of resource cost structure and the practical significance of different costs and explain the factors influencing optimum size and the significance of demand and supply relationships.
q1. jane wants to buy a beautiful doll as a gift for her sisters birthday. she knows that the same product is offered
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