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In Music Ville, the price elasticity of demand for CD players is 1.3, the income elasticity of demand for CD players is 0.4, and the cross elasticity of demand for CD players with respect to MP3's is 0.1. If incomes in Music Ville increase by 15% with no change in the price of a CD player, will the number of CD players increase or decrease, and by what percent?
Purchase the machine it is currently renting for $150,000. This machine will require $20,000 every year in ongoing maintenance expense.
How do the instruments of contraction monetary policy work in principle.
For several decades the labor force participation rate of women increased steadily but average hours worked per employed woman decreased steadily. Holding all other factors constant, could rising wage rates of women explain both phenomena? Explain. [..
Assume instead that the industry can sell any also all of its output at the fixed marketplace price of P = 120. Find out the industries optimal output.
Illustrate and reinforce your answer with any theories from international trade and FDI theories.
What services do you predict Bangalore India exports and what services do you predict it imports.
What variables to include in x. What functional form to use; should x include higher order, interaction terms of variables.
Industry-land was so named because it is highly industrialized. It is a world leader in production of manufactured goods. If industry-land put all its productive efforts into manufactured goods, it could produce 1,000 units per year. Draw a produc..
We are all familiar with fluctuating prices of gasoline at the pump. Explain why does this happen.
Stanley's profit-maximizing output, price, and profit if he were allowed to set his own price instead of having to charge $0.80.
If the economy falls into a recession, the stock's return is projected at a negative 11.6 percent. The probability of a normal economy is 80 percent while the probability of a recession is 20 percent. Illustrate what is the variance of the returns..
Your organization is considering offering a flexible benefit plan but has been advised that it could create a higher risk for adverse selection.
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