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Consider two markets. The initial equilibrium for both markets is the same, P = $4.50, and Q = 27.0. When the price is $7.75, the quantity supplied of cat food is 61.0 and the quantity supplied of snake oil is 109.00. The demand for both goods is the same (for simplicity of analysis). Use this information to answer the questions below:
Using the midpoint formula, calculate the elasticity of supply for snake oil? Please round to two decimal places.
Supply in the market for cat food is:
Now discuss the fact that deflation is the central bank's worst nightmare. Make sure you refer to a real interest rate of -2.68%. Why is this environment such a nightmare for the central bank and monetary policy?
Which of the following statements best describes the concept of a binding price floor. Suppose that the equillibrium price of donuts is $1.00 per donut.
the u.s. cigarette industry has negotiated with congress and government agencies to settle liability claims against it.
Since the cash flows compose a gradient series followed by a uniform series, solve the problem using those factors. Determine the FW of the cash flows.
Suppose that two people are playing a guessing game with a prize going to the person closest to one-half of the average. Guesses are required to be between 0 and 100 (could be integers or decimals). Show that none of the following are Nash equilibria..
If there were a decrease in the market demand for a product with no change in market supply, the equilibrium price would:
Select an article from The Wall Street Journal or some other business or economic periodical that relates to the economic topic(s) covered in Workshop Two. Prepare a one to two page analysis of your article . Be sure to include the topic, the author’..
A press release is a story that will be interesting to the readers. Identify a current event that has taken place in the last six months, and calls for a press release. Then, write a press release that incorporates your knowledge of the audience and ..
You are the manager of a firm that receives revenues of $175,000 per year from product X and $50,000 per year from product Y . Both products have similar production costs. The own price elasticity of demand for product X is -1.5, and the cross-price ..
A t-shirt maker would be willing to supply 75 t-shirts per day at a price of $18.00 each. At a price of $20.00, the t-shirt maker would be willing to supply 100 t-shirts. Using the midpoint method, the price elasticity of supply for t-shirts is about
Resource B has to be taken down for maintenance 10 minutes every hour (works for 50 minutes, and is down for 10 minutes). Resource D has to be taken down for maintenance 15 minutes every hour (works for 45 minutes, and is down for 15 minutes). Mainte..
Lisa plans to retire on her 61st birthday. On her 22nd birthday, Lisa will start savin $A per year for 40 years. Starting on her 62nd birthday, Lisa plans on withdrawing $10000 and will continue these annual with drawls until the account is exhausted..
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