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The management of Iron Mills have estimated the following elasticity’s for its product as ?Qx,Px= 2; ?Q,I=1; and ?Qx,Py= 1.5 Where x refers to iron, I to income, and y to steel.
Next year the firm would like to increase the price of iron by 6 percent. Management forecasts that next year income will rise by 4 percent and that the price of steel will decline by 2 percent. If the company’s sales of iron this year are 1,200,000 kilograms, how many kilograms of iron can the firm expect to sell next year?
An economy is faced by the exhaustion of an important natural resource at a time when it is introducing improved technology.using a diagram how these events will affect the economy production possibility curve.
Currently, at a price of $0.5 each, 200 popsicles are sold per day in the perpetually hot town of Rostin. Consider the elasticity of supply. In the short run, a price increase from $0.5 to $1 is unit-elastic (E s = 1). In the long run, a price incre..
in a two-player one-shot simultaneous-move game each player can choose strategy a or strategy b. if both players choose
Ken loans his grandson rex $20,000 at 5.5 percent per year to help pay for executive chef schooling in Florida. Rex requires three years till he begins to earn a salary. he agrees to pay ken the loan in the following order : year 1,2,3 nothing to be ..
Explain why you used either the CPI data or the GDPD data in your answer to part A.
What do you understand by the term ‘Keynesianism’? From a policy perspective, outline key Keynesian policies comparing and contrasting these against a neo-liberal policy platform.
Using quarterly data, calculate the coefficient of variation of detrended personal disposable income, consumption, consumtion of durables, and consumption of nondurables plus services. Comment on the relative variability of these series.
cool-aire corporation manufactures a line of room air conditioners. its break-eve sales level is 33000 units. sales are
Consider a football franchise with 10 home games and two types of tickets (high quality and low quality) facing consumers of two types as described below:
Give an example of how you would use this information to set the price for your product in the market place and explain one factor in detail about how shifting demand and supply curves makes market demand estimation difficult
Draw the decision tree for this problem without the probability values
the director of supply management at acme industries has come to you about choosing a source for a screw fastener that
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