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An auto dealership estimates that its demand curve has an elasticity of 2.78. If it wishes to increase sales by 12%, by how much should it decrease price? What will happen to revenue (rise or fall)? If instead it raises price by 20%, what is the percent decline in sales?
Government decreases current tax, while holding government spending in the present and future constant. (a) How does this effect aggregate output, employment and the real wage What is the multiplier and how does it differ from the government expen..
w suppose that the interest rate falls to 50%, and the household decides not to borrow or lend at alll. Is the household better off or worse off with the higher interest rate?
Produce the profit maximizing level of output and therefore there will be no deadweight loss associated with this production.
1. Why might federal spending on roads, waterways, or national security be less subject to direct expenditure off sets than spending on health care or education 2. What might account for the fact that estimates of effect time lags for fiscal polic..
there are also more than 475 bilateral and regional trade blocs, including the North American Free Trade Agreement and the European Union, which provide special trade preferences to member nations.
Determine the price, income and cross price elasticity of demand and how would you characterize the demand for haddock?
An increaseing governemtn expenditure in increasing GDP when it is financed by rasing taxes or slling government bonds to the general public or else.
What would the number of paying patients and federally funded seniors be if the federal funding agency raised its rate to $120 per treatment?
Compare the political scientist's view of government and economic policymaking and the Public Choice conception of politicians, bureaucrats and special interest groups in the political process. Which do you consider to be more realistic for unders..
A firm faces a perfectly elastic demand for its output at a price of $6 per unit of output and each hour of labor produces five units of output. For L number of workers hired each hour and w hourly wage rate, the firm faces an upward- sloped labor..
The perfectly competitive company takes the equilibrium value set through the market and maximizes profit through manufacturing where price, which also equals marginal revenue, is equal to marginal cost.
The ECON3305 company was considering a price increase and wished to determine the price elasticity of demand
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