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Which of the following will not result in a change in demand? (a) a change in income (b) a change in the good’s own price (c) a change in the price of a substitute (d) a change in preferences
The average unleaded gasoline price for california residents on May 30, 2011, was $4.12 per gallon. Assuming that the base period (price index = 100) is 1996 and that the unleaded gasoline price for that year was $1.10 per gallon, compute the average..
Compute the value of deadweight loss with the new demand curve to verify your intuition about the answer to the previous question.
In the small town of Springfield, Duffman observes that the price of beer has fallen. Duffman concludes that the total amount of money spent buying beer has to fall since the price of beer is lower.
Compute the effective annual rates for the following:
q1. consider a firm as we did in the notes that maximizes it profits by selecting how many workers and how much capital
Consider a simple economy that produces two goods: apples and oranges. The following table shows the prices and quantities of the goods over a three-year period. Year Apples Oranges Price Quantity Price Quantity (Dollars per apple) (Number of apples)..
If you were a manager in a tobacco company, analyze the elasticity of demand for tobacco products. Evaluate the factors involved in making decisions about pricing tobacco.
you are a manager in a perfectly competitive market. the price in your market is 45. your total cost curve is cq 10
At what prices is the demand elastic? In what price interval is the demand inelastic? How does revenue change from the elastic to the inelastic zone of the demand?
Calculate the expected annualized compound rate of return over the five years for each bond. Which bond offers the higher expected compound rate of return?
Zelda Manufacturing has are unique product that sells for $15 per unit and marginal cost is $7.50. Conclude Lerner index for Zelda Manufacturing. Does this index indicate market power.
The Federal Reserve’s target rate for the federal funds rate
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