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The price elasticity of demand for gasoline is estimated by some researchers to be -0.02. Approximately, what percentage change in the price of gasoline induces an increase of 1% in its consumption?
Which of the following sentences contains an incorrect use of an adjective or adverb?
One Macro-prudential policy that can counter the systemic risks from the boom/bust finance over the business cycles is?
Illustrate what is the relationship among a firm's total income, profit also total cost?
Company A, a low rated firm, desires a fixed rate, long term loan. Company A currently has access to floating-rate funds at a margin of 1.2% over LIBOR. Its direct borrowing cost is 13% in the fixed rate bond market. What’s the total cost savings can..
Suppose that the manager of a paint supply store wanted to estimate the correct amount of paint contained in one-gallon cans purchased from a nationally known manufacturer. It is known from the manufacturer’s specifications that the standard deviatio..
Future costs as well as future payments have present values. For example, some researchers say that global warming could cost $1 trillion per year in 100 years. Using the present value formula and an interest rate r = 5%, one researcher (William Nord..
Suppose that you have a job paying $70,000 per year. With a 5% probability, next year your wage will be reduced to $40,000 for the year. What is your expected income next year? Suppose that you could insure yourself against the risk of reduced consum..
Skyscraper City has a subway system, for which a one-way fare is $1.50. There is pressure on the mayor to reduce the fare by one-third, to $1.00. The mayor is dismayed, thinking that this will mean Skyscraper City is losing one-third of its revenue f..
Firms operate in a market structure that approaches perfect competition typically are known as "price takers", i.e., the individual firm can only expect to get the price dictated by supply and demand conditions and the decisions of the individual fir..
Suppose that Abdul opens a coffee shop. He receives a loan from a bank for $100,000. He withdraws $50,000 from his personal savings account. The interest rate on the loan is 8%, and the interest rate on his savings account is 2%. What is Abdul's impl..
If the market for a product is broadly? defined, then. Which of the following will NOT cause a shift in the supply of? gasoline?
Jackie has the following utility function: Derive the equation for the marginal rate of substitution for this utility function. Solve for Jackie’s optimal consumption bundle.
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