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Important information about Airline Industry
Select an industry that is affected by the economy, such as the airline, automotive, home building, or technological industry. Keep in mind that you will use the industry chosen throughout the course.
Find at least two sources to help you answer the following questions about the air line industry. in air line industry, is price elasticity of demand considered elastic or inelastic? Are there substitutes available? Is the good a luxury or a necessity? Explain. What is the price elasticity of supply for air line industry? Explain.
Organize your research for this week using the annotated bibliography template in Appendix B. For each entry in the annotated bibliography, include an APA-formatted reference and a summary of the major points in the article or Web site.
hat is your expected utility without insurance? Suppose you can buy insurance that will cover the medical expenses but not the foregone part of your salary. How much is an actuarially fair policy, and what is your expected utility if you buy it?
Suppose that natural real GDP is constant. For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent. Draw the new short-run Phillips Curve.
Explain in a nontechnical way why demand is elastic in the northwest segment of the demand curve and inelastic in the southeast segment.
Describe the US household is harmful to the economy with the use of AS-AD diagrams.
Manufacturing support also selling as well as administrative costs comprise both variable and fixed costs; fixed manufacturing support costs for the present year
In the 1970s people had become accustomed to high inflation. In 1979, Bank of Canada decided to fight inflation and decreased the money supply growth rates.
An University President wants to reduce expenditures on fringe benefits
When and why were the inflation and unemployment rates negatively correlated? When and why were the inflation and unemployment rates positively correlated?
A perfect competitive firm has the cost function TC = 1000 + 2Q + 0.1 Q^2-What is the lowest price at which the firm can break even?
Suppose the government is concerned that the going wage rate of $6 per hour for low skilled workers is too low.
Assuming the phone company has to charge the same monthly rental fee and unit price to all its customers, at what level should it set these charges?
Calculation problems should be proven by showing the process you used or the formula you applied to solve the problem.
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