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What is meant by the elasticity of demand and the elasticity of supply?
Why do economists find these concepts useful?
If the local government can enforce a rent control law that sets the maximum monthly rent at $1500, will there be a surplus or a shortage, of how many units and how many units will actually be rented each month
Assume that impediments to collusion are minimal, in the following sense. All bidders involved in a bidding ring can costlessly determine each other's valuations. Furthermore, the ring has no problem making (and enforcing) agreements
Desmond is attending university as a full time student this year. Desmond therefore had to give up his full time job in which he earned $25,000 per year. He also had to move away from his parents' home where he was paying $5,000 per year
Show that there exists a unique solution to this problem, but there exists no Lagrange multiplier. Show that this is because the Slater condition is not satisfied.
You are starting your own Internet business. You decide to form a company that will sell cookbooks online. Justcookbooks.com is scheduled to launch 6 months from today. You estimate that the annual cost of this business will be as follows: Technol..
Mike buys a corporate bond with a face value of $1000 for $900. The bond matures in 10 years and pays a coupon interest rate of 6%. Interest is paid every quarter. A). Determine the effective rate of return if Mike holds the bond maturity.
Suppose that the price of a stock is $50 at the beginning of a year and $53 at the end of the year, and it pays a dividend of $2 during the year. Calculate the stock's current yield, capital-gains yield, and the return.
A purchasing agent for a trucking company is shopping for replacement tires for their trucks from two suppliers. The suppliers' prices are the same. However, Supplier A's tires have an average life of 60,000 miles with a standard deviation of 10,0..
In the case of more elastic supply, is the deadweight loss larger or smaller?
The subsection "The Rational Expectations Equilibrium Approach: Empirical Evidence" investigates the rational expectations hypothesis for the United States. Do the same analysis for Australia.
Assume this monopolist's marginal cost is constant at $12. What quantity of output (Q) will it produce and what price (P) will it charge
For either route, the volume of traffic will be 400,000 cars per year. These cars are assumed to operate at $0.25 per mile. Assuming a 40-year life for each road and an interest rate of 10%, determine which route should be selected.
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