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According to posting from last fall, sales for products such as Spam, pancake mixes, instant potatoes, rice and beans have been booming during the recession; a spokesperson from a grocery chain is quoted as saying “They’re real belly fillers.” Comment on this, using concept related to any one of the elasticities discussed in class.
-How can explain the situation with graph?
Define the term "innovation." What is innovation anyway? Is it the same as New Product Development?
The government plans to rise state spending by $2bn in the next fiscal year.
If supply at every price is reduced by five gallons, what will the new equilibrium price be.
Describe a situation in which there is an economic argument for regulation the quantity of pollution reduction in order to achieve reduced pollution levels rather than using a tax.
How do legal restrictions on practice for nurses and physicians tend to affect the observed elasticity’s of substitution? Would elasticity tend to be higher if legal restrictions were removed? Would quality of care be affected?
The saving in manufacturing costs, owing to the special tools, is estimated to be $150,000 per year for 5 years. Assume MACRS depreciation for the special tools and a 39% income tax rate. What is the after-tax payback period for this investment?
What environmental factors have affected the types of costs in the airline industry after 2001? What specific tactics has Southwest deployed to blunt or exploit these environmental factors? How have these factors influenced Southwest Airline's market..
What nominal rate per month is equivalent to an effective rate of 3.8% per quarter, compounded continously?
Is the price mechanism of a perfectly competitive market a good mechanism to allocate gasoline.
Derive the income elasticity of demand function for individuals with (a) cobb-douglas (b) perfect substitutes and (c) perfect complements utility functions
In an effort to protect domestic olive oil producers from international competition, the French government is considering the introduction of an olive oil subsidy. In a diagram, sketch the demand curve and the supply curves and clearly mark the marke..
Assume Adia and Zardia can switch between producing wheat and producing beef at a constant rate: In one hour, Andia can produce 3 Bushels of wheat and 5 pounds of beef. At which of the following prices would both Andia and Zardia gain from trade with..
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