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Your company is considering a price reduction on a product which currently sells for the price of $5.00. You know the price elasticity for the product is roughly equal to -2.3 over the range being considered for the price change. The product has been selling at the brisk pace of 500 per week. To increase market share, you would like to increase sales to 750 per week.
What price should you set?
Given that an individual has paid the initial minimum charge, do you expect her to consume less than the amount to which the minimum charge entitles her? To answer this question properly, you need to superimpose some indifference curves on the sam..
a. If Mrs Siegal can only choose one alternative, and if she wants to maximize the most healthy days per dollar that she gets, which option will she choose? b. If the price of a pill ncreases to $3, which option will she choose?
"If every employer hired its best qualified applicants for a job at every opportunity, the phenomenon of black poverty (as distinct from poverty) could be wiped out in ten years." Do you agree/disagree? Comment.
Describe autarky equilibrium if all the English always consume equal quantities of wine and cloth. Describe autarky equilibrium if Portugal always consumes equal quantities of wine and cloth.
Demand for refrigerators is often explained as cyclical and very sensitive to refrigerator prices & interest rates. Given these characteristics, explain the effect of each of the following in terms of;
Campbell's sells used trailers, U, and new trailers, N. Its profits are given through Õ = 100N + 68U - 5N2 - 5U2 - 2NU. Determine Campbell's maximum profit is
Consider a tropical island economy with 2-sectors, souvenir manufacturing and hospitality. Both sectors are perfectly competitive, and workers are equally able and willing to work in either industry.
If the desired fiscal stimulus is $20 billion and the desired AD increase is $50 billion, we can conclude that the MPC is:
Consider a simple economy with only Robinson Crusoe, coconuts and leisure. He has utility U (c,l) = c^(1/2)*l and a production function C=L^(1/2), where c is the amount of coconuts he consumes, l is the amount of leisure he consumes, and L is the ..
Illustrate what are the pros and cons of a company that competes in a global environment. How do you think this has affected the U. S. economy and the global economy.
After the past five years respectively. Elucidate what is the average dividend growth rate.
Provide a report to management of the firm as to whether or not it should continue to operate at a loss?
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