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Q1. A discount store has a special offer on DVD players and lowers their price from $150 to $100. Assume the store manager observes that the quantity demanded increases from 700 CD players to 1,300 DVD players. Illustrate what is the price elasticity of demand for DVD players?
Q2. (a) Illustrate what are the most important determinants of the demand function that a firm faces for the commodity it sells?
(b) Illustrate what is meant by producer's goods and by derived demand?
(c) Why is the demand for durable goods (both consumers' and producers') less stable than the demand for nondurable goods?
Application Coal mining believes that it can increase labour productivity and, therefore, net revenue by reducing air pollution in its mines. Explain how much pollution reduction should Appalachian Coal Mining Undertake.
efficient markets hypothesis you invest 10000 in the market at the beginning of the year and by the end of the year
How much deadweight loss does Great Reception causes when it restricts output and charges a price above marginal cost.
Following the war, the government of Country A would like to impose tax RMx on cars. Ilustrate and explain with graph for the car market due to the taxes. In your opinion, who will bear more of the taxes imposed-suppliers or consumers.
q1. cost mart reduces the cost of a 42 inch tv plasma from 1200 to 1000. as a result sales of tv plasmas increased from
If a tax were to be imposed on one of these items, for which item would the tax be the most efficient.
Assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It currently uses 100 workers to produce 6,000 units of o..
based on market research a film production company in ectenia obtains the following information about the demand and
The initial offering price was $34.40 per share, and the stock rose to $41 per share in the first few minutes of trading. Bostitch paid $905,000 in legal and other direct cost and $250,000 in indirect costs. What was the flotation cost as a perce..
What is the biggest disadvantage of using shells as money.
Consider an economy in which the amount of investment is equal to the amount of savings (i.e., the economy is closed to international flows of capital).
Distinguish among microeconomics also macroeconomics also identify some relevant topics to each
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