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Cups of coffee and donuts are complementary. Both have inelastic demand. A hurricane destroys half of the coffee bean crop. Use appropriately labeled diagrams to answer the following questions:
a. What happens to the price of coffee beans?
b. What happens to the price of a cup of coffee? What happens to the total expenditure on cups of coffee?
c. What happens to the price of a cup of donuts? What happens to the total expenditure on donuts?
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explain how the short-run phillips curve the long-run phillips curve the short-run aggregate supply curve the long-run
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You are currently charging $1 per bag of popcorn, spending $200 in advertising, charging $1 for a soda pop, and per capita income is $12,000. a. Compute the elasticity coefficients for price, advertising, income, and cross-price. b. You are curren..
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An improvement in soft drink bottling technology and an increase in the prices of sugar and high- fructose corn syrup.
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Suppose that the reserve requirement is 10 percent and the balance sheet of the People's National Bank looks like the accompanying example. • What are the required reserves of People's National Bank Does the bank have any excess reserves
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