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Suppose that the price elasticity of demand for automobiles is known to be -2.50. Will a shortage of steel (note: steel is the primary input into the production of cars) likely increase or decrease the revenues of car manufacturers? Carefully explain
The WSJ recently presented data suggesting that United Airlines was not covering its costs on flights from San Francisco to Washington D.C. The article quoted analysts saying that United should discontinue this service.
Suppose that, in a perfectly competitive market at the profit maximizing quantity, the market price is greater than average total cost. Carefully explain what will happen to the number of firms, the market supply and the price of the good
Ilulustrate what incentives are needed for business to adopt new technology.
Discuss actions the government could take to induce firms in this industry to produce the socially efficient level of output.
find the yield to maturity of the following securitiesa. a security paying 1000 in one year for which you pay 926
Suppose that there are 1,000 hot-pretzel stands operating in Toronto.Each stand has the usual U-shaped average total cost curve.
How would the four basic markets of the macro model (Aggregate Demand and Supply, Long Run Supply, Labor, Credit or Money, Capital change) change in response to the catastrophe in japan. Most importantly, how would the lines and curves in each mar..
Explain the neo-classical theory of trade and show the difference between this and the classical approach, as wellas the similarities
New Light Inc. has just developed a solar panel capable of generating 200% more electricity than any solar panel currently on the marketplace.
Using your answers to parts (a) and (b), what is the percentage change in the bond’s price as a result of the 1 percent increase in interest rates?
Are retail gasoline prices essentially equilibrium prices? Why or why not? In most markets, are prices typically at the equilibrium? Why or why not? What might keep prices from moving to the equilibrium?
Assume that there are only two inputs (labor and natural resources) producing two goods (movies and gasoline) with no improvement in society's technology over time. Further, assume that natural resources are being rapidly depleted.
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