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A 10 percent increase in the price of soda leads to a 20 percent increase in the quantity of iced tea demanded. It appears that:
Cross-price elasticity of demand for iced tea is -2.
Why is it negative and not positive? I don't see any decreases in this sentence.
A town’s recreation department is trying to decide how to use a piece of land. One option is to put up basketball courts with an expected life of eight years. Another is to install a swimming pool with an expected life of 24 years.
Which of the following was not a cause of the U.S. budget deficits in the 1980s? Which of the following does not qualify as an automatic stabilizer? Income taxes affect aggregate demand. Which of the following constitutes a direct tax?
Why is their a growing disparity between the rich and poor in the US? What are some of the reasons for this and what should the government do to bring about growing equality with income?
Bank of Japan launches negative interest rates Feb 16, 2016 Central bank encouraging banks to lend, businesses to invest and savers to spend. What are the Central bank’s objectives of launching negative interest rates? Explain carefully using diagram..
Suppose that Erin spend her incomes on two goods, food (X) and clothing (Y), and that her utility function is given by U(X,Y)=.20X2Y2 (The marginal utility for X is .40XY2 and that for Y is .40X2Y ). The prices of food and clothing are $10 and $20 fo..
Does Ike feel emotionally neutral since the dollar value of the gain in his stock portfolio exactly offsets the amount of extra taxes he has to pay
Participate in a discussion with your classmates regarding where you see the U.S. economy in its business cycle right now, as based on the economic concepts in the textbook. Now that we learned that the real business cycle results from fluctuations i..
Rent control is an example of a price ceiling. Price ceilings keep prices low for consumers. We can clearly see that landlords are worse off.
Assume there is a Worker who has a utility function over money income m and leisure l is u(m,l)=(m*l)^1/2. This worker choose how many hours to supply to the labor market where h=16-l subject to the market hourly wage w.
Ethics begins at home. What moral and ethical problems do you observe around your school? What seems to be causing the collapse of values, if that is what you perceive? Or what keeps students on a moral and ethical journey?
Complete the first column of the following table by computing the cross-price elasticity between penguin patties and flopsicles
Mutt and Je are going to trade corned beef and cabbage. Mutt has 4 pounds of cabbage and no beef, and Je has 4 pounds of beef and no cabbage. Mutt is indifferent between corned beef and cabbage. Je always consumes corned beef and cabbage in fixed pro..
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