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Q. income elasticity of demand for your firm's product is estimated to be 0.75. A recent report in Wall Street Journal says that national income is expected to decline by 3 percent this year.
a. What should you do with your stock of inventories?
b. What do you expect to happen to your sales?
c. How would you answer parts a and b if you expected a 5 percent increase in income instead of a decrease?
Describe how much the consumer plans to spend in each year and how much she borrows or lends in the first year.
Which of the following hedging strategies involves a loan without a futures contract.
Elucidate why housing is expensive around campus and use the concept of implicit cost to justify students' hesitation to move away from campus.
The law of diminishing returns applies to which of the subsequent segments of the marginal product of labour curve.
Suppose that there are two products: soda along with clothing. Both Brazil and the United States produce each product.
Set all variables to their baseline values. Elucidate how much money do consumers want to spend on spaghetti when the price.
Elucidate the marginal cost of a string. Compute marginal revenue and marginal cost for each quantity.
Explain why is the index of industrial production an appropriate coincident indicator. Why is the average prime rate charged by banks an appropriate lagging indicator.
If the value of M increased from 50,000 to 60,000 also nothing else changed which would equilibrium price increase or decrease. Would the equilibrium quantity increase or decrease.
a bear that weighs 4000n gasps a vertical and slides down at constant velocity. Illustrate what is the friction force that acts on the bear.
Elucidate briefly in what way the HOV, or factor content theorem, extends the standard HO model.
Explain how will this combined tax-transfer policy affect aggregate demand at current prices.
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