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Important information about Elasticity and price changes
Suppose demand shifts out to the right by 10 percent, the elasticity demand is 1.5 and the elasticity of supply is .5, By how much will price change?
Explain why competitive markets normally lead profit maximizing firms to make choices about resource use that lead to an "efficient" allocation of resources to the market?
Suppose the following equations discuss a hypothetical economy where both the price level and interest rates are fixed.
Describe what type of foreign investments would be best for the economy's PPF. What are the opportunity costs of these decisions.
Explain why is efficiency lost at the extremes as when substantially more of one good and very little of another is produced?
If you can borrow (and lend) money at an interest rate of 8 percent, will the investment be a profitable undertaking? Is the project profitable at an interest rate of 12 per cent? Provide numerical calculations in support of your answers.
Illustrate what is the elasticity of demand for the product that is produced by the company.
Make a short paper which relates how specific material from economic course where we cover supply and demand, elasticity and etc.
Elucidate whether each of the subsiquent would make fiscal policy more effective or less effective
What might be included in the "total cost" of acquiring and watching movie on DVD? What about the "total cost" of seeing a movie at the multiplex?
Illustrate what does the term "Recession" mean and how do we know when one occurs. How does government intervene to move the economy out of a recession.
After the past five years respectively. Elucidate what is the average dividend growth rate.
So many states provide firms with an investment tax credit that effectively reduces the price of capital.
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