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Q. Calculate the income elasticity of demand for product X when I= $30. Explain how could we categorize product X? Do you reflect on commodity X a cyclical or non recurring good? Explain why. Do you consider product X a necessity or luxury good? Explain why. Suppose the economy is in a recession and per capita disposable income is expected to decrease by 5%, then what percentage effect on sales would you expect to take place?
At what price would demand be unit elastic, assuming all else equal. Justify your answer
Increasing the minimum wage will result in a decrease in employment for workers who now earn less than the new minimum wage.
If the market price of the product is 270, how much output should the firm produce in order to maximize profit. How much profit will this firm make.
Why does Caterpillar as well as your parents have different opinions about the value of the dollar.
Suppose that the market price for a bottle of vitamins is $2.50 and that at that price the total market quantity demanded is 75,000,000 bottles.
The constant rate no before the one child policy; after the introduction population growth drops to the constant rate n1 analyze the effect of this policy.
Suppose now that the government reduces (t) and increases (t') so that the government budget constraint continues to hold. What will be the effects on an individual con-sumer's consumptionin present
The government plans to rise state spending by $2bn in the next fiscal year.
One of the three ADM executives was actually an informant who tipped off the Feds about this conspiracy. Which executive was he. Why did he rat out his co-workers.
Suppose that the supply curve of healthcare services is perfectly inelastic. Analyze the impact of an increase in consumer.
Open a pizza restaurant and is considering either selling the bonds and using the 100,000 to start his restaurant or borrowing the 100,000 from a bank which would charge him an annual interest rate of 7 percent.
Suppose that the demand for healthcare services is perfectly inelastic while the supply curve is upward sloping. Analyze the impact.
How many shares of common stock must be issued as well as at what price, to raise the required capital.
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