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consider the following events; Scientists reveal that consumption of orange decrease the risk of diabetes, and at same time, farmers use fertillizer that makes orange trees more productive. Illustrate and explain what effect these changes have on the equilibrium price and quantity of changes
Suppose you lend $20,000 at a 7.5% interest rate to a friend for one year. At the time of the loan your expected rate of inflation is 2.5% while your friend's expected rate of inflation is 2.9%. However, by the end of that year prices have increas..
Suppose that the current price of oil is $60 per barrel and the quantity sold is 90 million barrels per day. Assume that the supply and demand curves for oil are linear. The current estimates of the price elasticity of supply and demand in the U.S..
A tax is placed on x so that x now costs Max $2 while his income and the price of y stay the same. How much of good x does he now demand? Would Max be as well off as he was before the tax if when the tax was imposed, his income rose by an amount eq..
According to the United States informationfor 1965-IQ to 1983-IQ (n=76), James and Adibi obtained the folowwing regression to explain personal consumption expenditure in the United States
An engineering freshman wants to purchase a laptop computer for use during the 4 ½ years that she plans to study engineering at Texas Tech.Assume that maintenance and supplies will cost $100 each six months . Use an interest rate of 12% per year wi..
The attendance at baseball games at a certain stadium is normally distributed, with a mean of 44,000 and a standard deviation of 2500. For any given game a) What is the probability that attendance is greater than 46,000
Why are they used again near the end of the audit?
(i) Calculate quantity demanded. (ii) Calculate the price elasticity for demand. Is demand elastic, inelastic, or unit elastic (iii) Calculate the income elasticity of demand. Is the good normal or inferior
The forecasting staff for the Prizer Corporation has developed a model to predict sales of its air-cushioned-ride snowmobiles. The model specifies that sales S vary jointly with disposable personal income Y and the population between ages 15 and 4..
what would an LM curve look like in a Quantity Theory world where velocity is fixed and is not impacted by interest rates (that is, M=kPY) what do you think would drive interest rates in such an environment
Analyze the economic theory used to complete the policy solution and determine the impact on the appropriate stakeholders.
After making these shifts, apply the midpoint formula to calculate the demand elasticities for the shifted points.
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