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Q1. The price of good is $1.20 per unit also annual demand is 800,000 units. Market research indicates that an increase in cost of 10 cents for every unit will result in a fall in annual demand of 75,000 units. Elucidate what is the cost elasticity of demand measuring the responsiveness of demand over this range of price increase?
Q2. How does theory hypothesize that a current account trade deficit will be resolved? Why does the US's persistent current account deficit not get reduced this way, meaning what other factors are in play? What is the impact on the macro economy of the persistent current account deficit?
His uncertainty about total sales of the book can be represented by a random variable with a mean of 30,000 and a standard deviation of 8,000. Find out the mean and standard deviation of the total payments he will receive.
An apparel manufacturer purchases cotton and other raw materials for the production of shirts. Would the sale of cotton from a cotton mill to the shirt manufacturer be included in the calculation of GDP? Why or why not?
The Environment Ministry in Japan proposed new carbon tax in order to meet Japan obligations to decrease carbon dioxide emissions under Kyoto Treaty.
Compute the certainty equivalent of his bet. Calculate the Arrow-Pratt measure of absolute and relative risk aversion.
barbers who have turned farmers will drive down wage rate but will still be earning more than if y had remained barbers. Who benefits from technological progress in farming Farmers or barbers.
Watch the video titled Fear the Boom and Bust. Using the tools of macroeconomics, identify the primary difference between the two philosophies.
Free zone would happen if the central bank lowered the federal funds rate and buy securities on the open market.
Explain how much additional profit do you earn using a two-part pricing strategy compared with charging this customer a every-unit price.
Determine the point price elasticity of demand for Tweetie Sweeties.Determine the advertising elasticity of demand.What interpretation would you give to the exponent of N?
1. What are the growth promoting policies prescribed by neoclassical models? 2. What are the growth promoting policies prescribed by new growth models? Give me the good explanation.
Explain how much shelter can she buy if she purchases 2 units of food.
q.in the early 1980s interest rates on long-term debt were at remarkable levels - above 15percent higher. within a
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