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Elasticity shows the responsiveness of supply or demand to changes in price. What are the factors exerting influence on price elasticities of supply and demand? In the economic recession, rising health insurance premiums are financially hurting the families.
Why is health insurance becoming too expensive for many families? Do you have an Inelastic Demand for your current health insurance plan? Why? Why Not? Are you in favor of the President Obama's public health care plan? Why? Why Not? Are you having an Elastic Demand for a dental insurance? Why? Why Not? Look at this also from the supplier's point of view. Why do some dentists charge less for teeth whitening? If a dentist faces an Elastic Demand, should he raise or reduce the treatment fee to boost his revenue?
Derive the golden rule savings rate for this economy. (Hint it will be 35 percent) What would be the new level of steady state y, c, s, k if the economy moved to the golden rule savings rate?
Dicuss should the government subsidize alternative fuel options given all you have learned about the growth? Give special thought to following two statements;
a farmer grows a bushel of wheat amp sells it to a miller for rs. 1.00. the miller turns the wheat into flour amp then
Distinguish between ongoing demand pull and ongoing cost push inflation. Carefully draw them. Why might it be difficult to establish the extent to which a given rate of inflation is either demand pull or cost push?
A student bought a $75 used guitar and agreed to pa for it with a single $85 payment at the end of 6 months Assuming semiannual (every 6 months) compounding, what is the nominal annual interest rate? What is the effective interest rate?
Redraw the Demand curve (only) in a new diagram. Demonstrate the Total Revenue change geometrically and indicate the Loss and Gain areas between the prices of $6 and $2 (Price has moved UP from $2 to $6).
Daniel is a diligent student who loves getting A's. But he also loves watching movies. Daniel is awake for 100 hours each week, and studying and watching movies are his only two activities. Daniel must study for 20 hours per week for each A he ear..
Assume that government purchases decrease by $10 billion, with other factors held constant, including the price level. Calculate the change in the level of real GDP demanded for each of the following values of the MPC
The Bureau of Labor Statistics reported that in December 2002, total labor force was 142,542,000 of a possible 214,967,000 working age adults.
Assuming no government sector, if planned investment spending is 200, what is the equilibrium level of aggregate output? Show this equilibrium level on the graph you have drawn.
What will be the level of output and price in the long run if this industry were perfectly competitive?
Suppose you are an executive director of the top management team of an American multinational.
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