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Q. A car dealer wants to get rid of the stock of last year's model. Assume that the dealer knows from past experience that the price elasticity of demand for cars is unitary (= 1). If the price of the cars is currently $20,000 also the dealer wants to increase the quantity demanded from 30 units to 50 units, Illustrate what must the new price be if the dealer is to sell the 20 additional cars?
Q. "Forecasters' predictions of inflation are notoriously inaccurate, so their expectations of inflation cannot be rational." Is this statement true, false, or uncertain?
Assumes the perfectly competitive firm is in long-run equilibrium also there is an rise in Demand
We know tastes and preferences play an important role in demand. Do you think of any possible future "popular product".
The no-trade equilibrium in Foreign. How do the relative no trade prices of computers compare in Home and Foreign.
If your employees are self-interested, how much output would you expect each individual worker to produce absent monitoring.
Explicate Illustrate what happens to the interest rates when the Fed makes open market bond purchases.
The fact that a percentage of the interest income paid by one corporation is excluded from taxable income has encouraged firms to use more debt financing relative to equity financing.
Illustrate what is the product maximizing level of output for this producer. Will the producer make a positive profit at this level of output.
Unusually good weather which improves crop production also a major oil discovery are examples of unexpected supply shocks in the economy
What is the expected profit of simultaneously pursuing both programs.
A manufacture procedure using 2 inputs, labor as well as capital.
If one defines incremental cost as the change in total cost resulting from a decision, and incremental revenue as the change in total revenue resulting from a decision, any business decision is profitable.
Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..
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