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The demand equation for a cola-type soft drink in general is Q = 20 -2P, where Q stands for quantity and P stands for price. Calculate point elasticities at prices of 5 and 9. Is the demand curve elastic or inelastic at these points? Calculate arc elasticity at the interval between P = 5 and P = 6. At which price would a change in price and quantity result in approximately no change in total revenue? Why?
Match each of the following characteristics or scenarios with either the term negative externality or the term positive externality. Over allocation of resources: (Click to select) Positive externality Negative externality.
discuss whether you agree or disagree with Chairman Bernanke's remarks on economic outlook and the role of the Fed' s monetary policy effectiveness by using unconventional policy.
You have been asked to assist your organization's marketing department to better understand how consumers make economic decisions. Write a 1,050-word analysis that includes the following:
What lessons can we infer from history around the efforts to enact National Health Insurance and/or Health Reform? What are the economic rationales for different types of government intervention in health care?
Consider the market for North Face coats. Suppose average household income increases from $38 thousand to $54 thousand per year. As a result, the demand for North Face coats increases from 430 to 507. Using the midpoint formula, what is the income el..
Consider a MONOPOLIST that vents an ozone reducing chemical into the atmosphere as a consequence of their production activities. Is this outcome efficient? Explain with the help of a diagram. Does the monopolsit have an incentive to reduce their poll..
Consider an economy with the following Cobb-Douglass production function: Derive the equation describing labor demand in this economy as a function of the real wage and capital. The economy has 27,000 units of capital and a labor force of 1000 worker..
Lightweight personal locator beacons are now available to hikers that make it easier for the Forest Service's rescue teams to locate those lost or in trouble in the wilderness. How will this affect the costs that the Forest Service incurs? (Ch 20 Ind..
For both of the following utility functions, draw the indifference curves for the indicated utility levels, including at least three consumption bundles on each. Be precise. Suppose Ann and Bob each have $90 with which to buy xanthum (x) and yarrow (..
Elucidate the concept of the opportunity cost. your answer could consider opportunity cost in the context of the production possiblity curve.
Suppose you have three indivisible assets, A, B and C with internal rates of return 2%, 5% and 10% respectively and initial costs of $1, $3, $3. Suppose you have $4 at 1% and can borrow at 12%. Which assets do buy?
Explain whether or not you believe modern media is an effective check on government action.
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