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The price demand function for 100 packs of whiteboard erasers is x = (360-4p)1/2. p is the price of one 100 pack of erasers.
Using the following equation: E(p) = (-p/f(x)) * f'(x)
A) What is the elasticity of p = $18? Is the demand elastic, inelastic, or unit elasticity at this price?
B) What price should the manufacturer charge in order to maximize revenue?
Regional economic integration can be seen as an attempt to achieve additional gains from the free flow of trade and investment between countries beyond those attainable under international agreements, such as the WTO. What are the pros and cons of th..
Restaurants have observed that large parties (eight or more) leave a lower average tip than smaller parties. Identify the effect, which also makes it more difficult to reach global environmental agreements, responsible for this phenomenon.
What is the maximum amount of good Y that can be purchased if X and Y are the only two goods available, and individual income is $600, Px=15 Py=10, and they are already purchase 30 units of good X?
A perfectly competitive firm sells 50,000 units of knives at a price of $3. The firm's average cost at 50,000 units is $2.75. Calculate the firm's profit.
The Jimmy Corporation issued a new series of bonds on January 1, 1996. The bonds were sold at par ($1000), have a 12% coupon rate, and mature in 30 years, on December 31, 2025. Coupon interest payments are made semi annually (on June 30 and December ..
There seems to be some evidence supporting the idea of a political business cycle. That is, the economy tends to experience particularly fast growth just prior to elections and slower growth or recessions some time after elections. Explain why and ho..
If the government were to increase taxes on gasoline, what will happen to the total government revenue? Why? What are you assuming about the elasticity of the demand curve of gasoline? What is the formula for elasticity?
You are the president of a commercial bank that is also a member of the federal Reserve System, and you wnat to increase your bank's reserves. but you currently have negative excess reserves, how would you raise your bank's reserves? what effects wou..
For months, Sammy has allowed his garbage to accumulate in his backyard, next to a school playground. Little Maria at age five, sees what to her promises to be a nice toy among the trash and runs into Sammy’s backyard during recess. Indicate the part..
The story of Coltan in the Congo is just one example of how an abundance of exploitable resources can often worsen or prolong military conflicts in nations that are too poor of ineffectively governed to protect these resources.
Suppose Congress is able to reduce its budget deficit permanently. Using the growth model, graphically illustrate the impact of a permanent deficit reduction on the steady-state capital-labor ratio and the steady state level of output per worker.
If B accepts, the division is implemented. If B rejects, each player obtains their outside option. Assume that if a player is indifferent between a proposed dividsion and his or her outside option, then the player accepts the division.
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