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Q1. Block's sells 500 bottles of perfume a month when the price is $7. A huge increase in resource costs causes price to rise to $9 also Block's only manages to sell 460 bottles of perfume. The price elasticity of demand is:
Q2. For a developing country to grow it needs capital. The major source of capital in most countries is domestic savings but the goal of stimulating the domestic savings usually is in conflict with government policies aimed at reducing inequality in distribution of income.
1. Comment on this tradeoff between equity also growth.
2. Explain how would you go about resolving the matter if you were the president of a small poor county?
firm competing in a monopolistic competitive market. What conditions exist when economic profits are maximized.
Illustrate what change in the economic enviJorgement led to this new equilibrium.
If the price level remains constant by Explain how more will real output increase.
Limited partnership arrangements alleviate which traditional problem associated with real estate investments.
Specify whether you agree or disagree with the statement as it appears on the topic survey.
If consumption and government purchases go up, what happens to GDP in the long run. Show this graphically.
Design an alternative author-compensation scheme under which the author and the publisher would pick the same price.
The payoff matrix of economic profits above displays the possible outcomes for Bob and Jane who are involved in game of whether or not to advertise.
Explain how can multiplier have a -ve effect. What is the relationship among the multiplier as well as the marginal propensities.
Use the two big questions of economics and the economic way of thinking to answer the following questions about the economic life of a homeless man.
Rusal believed the price of aluminum would fall because of the growing accumulation of inventories worldwide.
Michael spends $10 a month on both Pez dispensers and Superman action. His marginal-utility-to-price ratio for the Pez dispensers is 40.
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