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A local supermarket lowers the price of its vanilla ice cream from $3.50 per half gallon to $3. Vanilla ice cream unit sales increase by 20 percent. The store manager notices that the unit sales of chocolate syrup increase by 10 percent. What is the price elasticity of vanilla ice cream? Round to the nearest tenth and drop the minus sign when submitting your answer
Why do the United States and many other countries have antitrust laws on the books? What's so harmful about oligopoly that warrants an entire body of law?
Explain the likely effects of a U.S. recession on the demand for Canadian exports. What would be the effect on Canadian aggregate demand? Suppose the Bank of Canada viewed its monetary policy as being appropriate (for keeping output close to potentia..
What lump sum of money (P) must be deposited into a bank account at the present time so that $500/month (A) can be withdrawn for five years (N), with the first withdrawal scheduled 6 years from today at a nominal interest rate (r) of 9% per year? [Hi..
Are the Internet business models B2C and B2B useful or do these models oversimplify complex business relationships?
Illustrate what is your opinion of the restaurateur's decisions. Would you recommend that she accept the $66,000 offer.
If market participants expect higher inflation in the future, the quantity of loanable funds demanded will increase. This will cause a movement along the demand function for loanable funds. If credit risk increases, supply of loanable funds will shif..
What is the current plan/bailout for Greece? Which countries and organizations are giving the country money? What are the conditions that Greece must abide by to receive these funds?
Explain why might it be appropriate for the government to allow a pharmaceutical company to have a monopoly in the production of a drug.
The government purchases component of GDP does not include spending on transfer payments such as Social Security. GDP does not also include the value of used goods that are resold. Do you think such exclusion make GDP a less informative measure of ec..
When he purchased his home, al silva borrowed $280,000 at 10% interest to be repaid in 25 equal end-of-year payments. After making 10 payments, Al found he could refinance the balance due on his loan at 9% interest for the remaining 15 years.
Linus has the utility function U(x; y) = x + 3y. Draw the indierence curve that goes through point (3,3), and the indierence representing combinations that gives Linus a utility of 6. a) Describe the shape of these indierence curves. If the price of ..
Which of the following would be included in GDP?
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