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Ceteris paribus, Diet Cola Brand X and Diet Cola Brand Y are substitutes in consumption. The price of Diet Cola Brand Y falls.
a. What happens to the demand for Diet Cola Brand X?
b. What happens to the demand for Diet Cola Brand Y?
Compare the impact on pre-recorded music compact disks and the cabinet maker''s work of an economic expansion that increases consumer incomes by 20 per cent.
Suppose the demand for gizmos is given by the following expression: P=20-5QD +4 I (Income) In this expresiion, P is the price gizmo, quantity is given in millions of units, and I is income.
The production capacity of the first year will be 4000 units and determine whether the company should upgrade or replace. Use a MARR of 20% per year.
The discussionin Section3 .7 suggestst hat Give up is optimal for Rich as long as (i) Kelly is very likely to win the immunity challenge once Rich gives up and
The Fed's decided to maintain its low interest-rate target in the face of a rightward shift of theAD curve in the late 1960s which led to an inflationary equilibrium. Discuss the short-run and long-run costs and benefits of the Fed's other two op..
In today's economic climate, retailers are continuously conducting sales in order to get customers in their doors. Analyze the short-term and long-term effects of continuous sales to all stakeholders.
b. Find marginal product. Find the number of labor (L) that the firm should hire to maximize marginal product. c. Find the number of labor (L) that the firm should hire to maximize total product of labor. d. Find the number of labor (L) that the firm..
The labour- force participation rate of married woman has more than doubled over the last 50 years. One economic influence on this rate was the increase in women's wages over the period. Another economic influence was the increase in men's wages
Output maximisation and cost minimisation
Will firms in a price-taker market be able to earn profits in the long run? Why or why not? What determines profitability? Discuss.
Discuss, using examples and academic references, the statement that perfect competition gives an optimal allocation of resources but that the existence of scale economies may make perfect competition impossible.
Explain the following statement: Any deviation from planned output or planned expenditures (Consumption + Investment) will throw the economy into disequilibrium.
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