unemployment, Managerial Economics

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Analysis of unemployment in relation to economics

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Ab, isoquant and its properties

isoquant and its properties

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Fall in Supply When the supply falls, the supply curve shifts to the left to position S 1 S 1 .  At the initial equilibrium price P 1 , quantity supplied falls from q 1

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Income elasticity of demand, demand function is q=4850 - 5p(1) + 1.5p(2) + ...

demand function is q=4850 - 5p(1) + 1.5p(2) + 0.1 Y WHEN Y=10000 p(1)=200 p(2)= 100 find income elasticity of demand for p(1)

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Disadvantages of a Free Economy The free market gives rise to certain inefficiencies called market failures i.e. where the market system fails to provide an optimal allocation

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