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Suppose the own-price elasticity of demand for good x is -0.25, and that the quantity of good x increases by 5%. what would you expect to happen to the total expenditures on good x?
a. increase
b. decrease
c. unchanged
d. neither increase, decrease nor emain unchaged.
q. think about a firm recently that you have done business with. illustrate what industry does this firm belong to? for
If the marginal product of capital is twice the marginal product of labor and the price of a unit of labor is $4, illustrate what must be the price of a unit of capital.
If short-run economic profits are greater than zero for firms in a monopolistically competitive market, in the long run we expect:
Recent concerns about global warming have lead firms to expect a higher depreciation of their capital in the future and households to expect lower levels of future income. Explain, with the help of a graph, what happens to a firm’s desired level of f..
Write 3-4 paragraphs pertaining to the theme below, be detailed on your work: The nuances and intricacies of nineteenth and twentieth century political and economic ideology The relationships among war, economics, and politics in twentieth century Eu..
In 1990, the ratio of Japanese to US labor productivity in the steel and consumer electronics industries were estimated to approximately 1.4 and 1.12. What country has the comparative advantage in producing steel and what country has the comparative ..
The Gross Domestic Product is constantly in the news in the United States. This year, we are looking at an annualized growth rate of between 2.2% and 2.4%. Over the past 60 years or so, the GDP has grown on average 3%. have circumstances changed wher..
lisa has a linear budget constraint and typical convex indifference curves associated with food and "all other goods." suppose that lisa is given $50 worth of food stamps, which can only be used for food, Draw lisa's budget constraints, with an witho..
On a typical day the Fed conducts defensive open market operations (defensive OMO) in order to keep the federal funds rate constant. With the aid of a graph of the federal funds market and a verbal explanation, show how the Fed does this, namely how ..
Assume consumer spending is given by the equation C = 275 + 0.8[Y - T], investment spending is equal to 425, government spending is equal to 250, and taxes (T) are equal to 250, while full employment real GDP is equal to 4050. According to the simple..
The currency-deposit ratio has been and is likely to remain relatively stable. The ratio of non-transactions deposits to transactions deposits increased by a factor.
Suppose two hot dog stands, Al’s & Bob’s, position themselves at different ends of a 100 yard stretch of beach. Assume there are 100 beach goers evenly distributed along the stretch of beach and travel costs are $.1 per yard. If Al charges $1 for his..
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