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A recent report by the Centers for Disease Control looked at the relationship between the price of beer and the incidence of new cases of STD’s. The report concluded that a beer tax increase of $.20 could reduce overall STD rates by 8.9%. Assume that a six pack cost $5.90 before the price increase. Calculate the cross price elasticity between beer and STD’s. What is the sign of this cross-price elasticity? According to your estimate, are beer and STD’s compliments or substitutes? Does your answer make sense? Explain.
Question 1: Consider the following sequential-move game between Ann and Bob.
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Using the method of Lagrange multipliers to derive Sharifah's demand for brownies and espressos. Explain how many brownies and espressos will Sharifah consume.
A major defence supplier expects to generate additional revenue from its recently won government contract. The company expects the revenue will be $110 million in the first year and the revenue increasing by $2.5 million each year for the next 4 year..
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Providing handouts to the audience before a presentation is not advisable because
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Which of the following best describes the concept of laissez-faire?
In economics, inflation is considered as a tax. There are also various costs of inflation. What is the inflation tax, and how might it explain the creation of inflation by a central bank? Explain how inflation affects savings and investment.
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