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1. If the price of a good or service increases and the total revenue received by the seller declines, is the demand for this good over this segment of the demand curve elastic or inelastic? Explain
2. Suppose the price elasticity of demand for farm products is inelastic. If the federal government wants to follow a policy of increasing income for farmers, what type of programs will the government enact?
Calculate the marginal product of hiring additional barbers, and fill in the last column of the table. Over what range is the marginal product of labor increasing? constant? diminishing? Graph the production function. By looking at the graph, you ..
The population of an isolated island consists of 10 people. In oneyear, each person can either pick 100 bunches of bananas or,alternatively, tend an oven that bakes bananas into banana bread.There is only one oven on the island.
Explain the value of a long tail as a signal, focusing on the general principle that signals must be costly to a strong bird, but even more costly to a weak bird.
Comment on the government's forecast that the $2bn in extra state spending is sufficient to remove the deflationary gap and restore full employment. You should assume that there are no other relevant changes in economic conditions that might i..
suppose two types of consumers exist, a more affluent group (1) with an estimated price elasticity for biscuits of -2 and a less affluent (2) with an estimated price elasticity for biscuits of -2.5. Pillsbury puts a posted price of a particular am..
Explain how this country might sustain this deficit over time without provoking a large depreciation in its exchange rate.
Perform a Durbin-Wu-Hausman test to evaluate whether ASVABC appears to be subject to measurement error.
What is the implication of the accounting identity for the numbers on a balance sheet?
Consider an investment project with the following cash flows: n Porject A Project B 0 -$150,000 -$120,000 1 $30,000 $25,000 2 $25,000 $15,000 3 $120,000 $110,000 A) Compute the IRR for each investment B) At MARR= 15% determine the acceptability of ..
The world's largest tulip and flower market Every day over 19 million tulips and flowers are auctioned at the Dutch market called "The Bloemenveiling." These Dutch auctions match buyers and sellers.
Explain what is meant by the term discrimination. Explain what statistical discrimination is
In the week of February 9-15, the rose market cleared at a price of $1.00 per stem and 4,000,000 stems were sold that week. During the week of June 5-11, the rose market cleared at a price of $0.20 per stem and 3,800,000 roses were sold.
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