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Suppose if the price of a good is $5, the quantity demanded is 100 units; when the price is $7, the quantity demanded is 80 units. Use the midpoint approach to compute the price elasticity of demand. Is demand at this point relatively responsive or relatively unresponsive to price changes? 2.) For this exercise you will need to first build a graph to these specifications: Draw a downward sloping demand curve with vertical intercept (0,16) and horizontal intercept (16,0). Label the price above which the demand is always elastic. Label the portion of the curve at which an increase in price will lead to increased revenue.
Suppose capital is fixed at 16 units. If firm can sell its output at a price of $100 per unit and can hire labour at $25 per unit, Explain how many units of labour should firm hire in order to maximize profits.
What do you think the sign and magnitude of the Cross-Price Elasticity of Demand would be between premium juices and soda.
In Japan, potential GDP is 600 trillion yen (¥) and the table below shows Japan’s aggregate demand and short-run aggregate supply schedule. Draw a graph of the aggregate demand curve and the short-run aggregate supply curve. What is the short-run equ..
In the short run ,lowering the federal funds rate shifts the aggregate demand curve----------so that the real GDP---------and the price level --------------
Briefly describe the details of the fictitious business that you created for this assignment. Assess the current environmental scan factors that are relevant to the decision making process.
Wilderness Adventures has earnings per share of $2.45 and dividends per share of $1.05. The total equity of the firm is $850,000. There are 40000n shares of stocks outstanding. What is the sustainable rate of growth?
Sam is interested in buying two types of goods, x and y. He can either use all his income to buy 3 units of x and 9 units of y, or 9 units of x and 3 units of y. If he spends all his income on x, how many units can he buy?
A monopolist that engages in perfect price discrimination, Along a straight-line downward-sloping demand curve, elasticity is
It is July 30, 2015. The cheapest-to-deliver bond in a September 2015 Treasury bond futures contract is a 13% coupon bond, and delivery is expected to be made on September 30, 2015. Coupon payments on the bond are made on February 4 and August 4 each..
A country that has never had its own currency has formed a central bank and put you in charge of developing money.
Illustrate on your graph and in words all important points and areas on the business cycle.
q1. dominant price leadership exists when the dominant firm establishes the price at the quantity where its mr mc and
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