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Dranove and Wehner (1994) argue that the statistical evidence used to support the supplier induced demand hypothesis is invalid because they find that the same statistical techniques also suggest that obstetricians induce demand. Briefly explain the supplier-induced demand hypothesis and why this finding by Dranove and Wehner is evidence against the hypothesis.
Which of the following are not included in GDP but probably should be?
What is the different between anticipate and un anticipate inflation? Describe when the government surplus a deficicit. Also draw loan able graphs to explain your answer.
According to By the Numbers, approximately when was the last time the United States had a trade surplus? As a percentage of GDP, what was the highest trade surplus the United States has achieved? What was the highest trade deficit the United States h..
The initial cost of machinery for producing a certain item is $50,000. The machinery will have a five-year life with no salvage value. The manufacturing process has a fixed cost of $5,000 per year and a variable cost of $16 per unit. At an interest r..
q1. dynamic rather than static demand and supply conditions are typically observed in markets of real world. hence
Among the families you know, how many work for companies that provide goods or services for capital formation—that is, for investment purposes rather than for consumption?
Explain how you would calculate the price elasticity of demand of gasoline? In general terms, explain how consumer and producer surplus will change as a result of this price increase?
Which of the following trends favor a more labor-intensive method of production? A growing number of desperately unemployed people as the result of rural-urban migration. A limit to the level that wages can fall (subsistence)
Explain the practical effect of price controls on product and service availability, quality and true cost. What is the full impact of rent controls? On whose behalf are they imposed? Who are the winners and who are the losers? What is the impact of p..
Other things equal, what effect will each of the following have on the equilibrium price level and the level of real output?
The market demand curve is Q = 38 -P. There are two firms: firm1 and firm 2. One has MC=2 and the other has MC= 5. They choose outputs simultaneously (the cournot model).What output is chosen in equilibrium
Suppose that a security costs $3,000 today and pays off some amount b in one year. Suppose that b is uncertain according to the following table of probabilities: b: $3,000 $3,300 $3,600 $3,900 $4,200 Probability: 0.1 0.2 0.3 0.2 0.2. Calculate the ex..
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