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Surgery Inflation Rates
Two similar surgeries, breast reconstruction and breast augmentation, have different prices. Breast augmentation is cosmetic surgery not covered by health insurance. Patients who want the surgery must pay for it themselves. Breast reconstruction following breast removal due to cancer is covered by insurance. The price for one of the surgeries has increased by about 10% each year since 1995 while the other has increased by only 2% per year. Which of the surgeries has the lower inflation rate?
When McDonalds Corp reduced its price of the big mac by 75 percent-Using your knowledge of game theory, what do you think disrupted McDonald's plan?
Calculate the cross-price elasticity for the following goods. Are they complements or substitutes?
Discuss how the requirement of a goods and the availability of substitutions impact price elasticity.
Assume two firms, A and B, serve a market with demand D(p) = 11 - p. Also assume that (i) firms compete for market share
Suppose that a competitive industry is in long Run competitive equilibrium. Then the price of substitute good (in consumption) decreases. What will happen to the short run to
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Using a supply and demand graph, make one shift of wither the supply or demand curve to illustrate the likely result of this action.
Calculate the effect of the following events on the monetary base:
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Illustrate what are the roles of central bank independence and financial market development in budget deficits and inflation.
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