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When the price of corn was "low," consumers in the United States spent a total of $8 billion annually on its consumption. When the price halved, consumer expenditures actually DECREASED to $6 billion annually. This indicates that:
Demand and Supply Curves. Demand and supply condition in the market for unskilled labor are important concerns to business and government decision makers. Consider the case of a federally mandated minimum wage set above the equilibrium, or market cle..
An individual has an income of $1000 per month with which they buy the composite good with a price of $1 and food with a price of $2/unit of food. Draw the budget constraint for the individual with the composite good on the y-axis and food on the x-a..
In the real business cycle theory, if longrun aggregate supply increases, then longrun aggregate demand increases by
In the absence of government interference, there is a constant marginal cost of $5 per ounce for growing marijuana and delivering it to buyers. If the probability that any shipment of marijuana is seized is 0.20 and the fine if a shipper is caught is..
Equipment purchased 2 years ago for $70,000 was expected to have a useful life of 5 years with a $5,000 salvage value. Its performance was less tha expected and it was upgraded for $30,000 one year ago. If replaced the existing equipment will be sold..
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
How many bushels will each of the farmer’s five acres produce? How much revenue will each acre generate? What are the TR and MR for each acre?
In Music Ville, the price elasticity of demand for CD players is 1.3, the income elasticity of demand for CD players is 0.4, and the cross elasticity of demand for CD players with respect to MP3's is 0.1. If incomes in Music Ville increase by 15% wit..
A hospital bought digital imaging equipment annual payments of $243,000 per year over 8 years. if the interest rate is 13% what will the total amount paid for the equipment be at the end of the eighth year?
Assuming that the price of fuel is $5.00/G and is increasing at a rate of 4%/year while the discount rate is 6% calculate the equivalent level zed price over 20 years
The objective is to fully explain why the company has been successful and will continue to be an effective price maker or if your firm is not a price maker, what actions need to be instituted to become a price-making firm.
Three policies used to restrict trade are: Tariffs, Quotas, and regulatory trade restrictions. Discuss pros and cons of each. If the government has to decide on one which one it will?
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