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Suppose the price elasticity of demand for heating oil is 0.2 in the short run and 0.7 in the long run. If the price of heating oil rises from $1.80 to $2.20 per gallon, what happens to the quantity of heating oil demanded in the short run? In the long run? (Use the midpoint method in your calculations) Why might this elasticity depend on the time horizon?
If the government wanted to achieve the same change in GDP as in part 8 by cutting taxes instead of increasing spending, how large would the tax cut need to be.
What is the main difference between a regular project contract and an energy performance contract? Define “Guaranteed Savings” contract type explaining the tasks of Customer and ESCO.
It is a common belief that social security benefits will run out in the near future. How can we save social security?
Two examples of price discrimination? and Think about a firm and its investments. Describe different types of capital. Describe the behavior of oligopolistic firm. how does the firm use Game Theory? define and explain the two types of game theory ass..
Tariffs are more favorable to an importing country than quotas because: Which of the following best defines the business cycle? Suppose that 2000 is the base year used to calculate the CPI. And ethe CPI in the year 2007 is 110. What is the value of t..
In the competitive market for welding services in Tucson, assume the demand is. calculate: (i) the quantity traded; (ii) the surplus generated by that trade; (iii) the division of that surplus between buyers’ and sellers’ surplus;
Show an expression for average cost. Derive an expression for marginal costs. Is there any range of production characterized by scale of economies.
In 2014, Thomas Piketty came out with a popular book, “Capital in the Twenty-First Century.” In it was a model not unlike the Solow growth model, discussing the long-run implications for the capital-to-income ratio, k/y. The traditional Solow growth ..
His uncertainty about total sales of the book can be represented by a random variable with a mean of 30,000 and a standard deviation of 8,000. Find the mean and standard deviation of the total payments he will receive.
Find out the Nash equilibrium prices of the procedures at the hospitals. find out the profit maximizing monopoly prices of the procedure at each hospital.
Under monopoly, still with the price PW which is again label triangle of consumer surplus and the triangle of producer surplus.
which nation should the company locate its new plant so as to minimize costs per unit of output.
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