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a. Use the midpoint method to calculate the elasticity of demand for a rising pizza price of $8 to $10 (i) when income is $ 20,000 (ii) when income is $ 24,000
b. Calculate the income elasticity of the pizza demand if revenue increased from $ 20,000 to $ 24,000 at (i) the price of $ 12 (ii) at at the price of $ 16.
Suppose a firm sells 20,000 units at a price of $10, but sells 40,000 units at a price of $8. Calculate the price elasticity of demand over these prices using the arc interval formula. Determine if the price elasticity if demand is elastic, inelastic..
Draw a conclusion and in one sentence interpret your results.
How does lean maintenance differ from the traditional approach under which a maintenance department has the responsibility for all maintenance functions? Which level on the maintenance performance hierarchy would you expect to find a lean maintenance..
You are the manager of the Santa Cruz Boardwalk Amusement Park, in Santa Cruz, CA, which offers a number of thrill rides to tourists. You consider your self a monopolist. What is the optimal “linear” (i.e. standard) price that you could charge? What ..
What was the share of the European Union spending On U.S. goods relative to U.S. GDP?
a) What is the probability that the travel time is between 45 and 50 minutes?
Explain how you would calculate the price elasticity of demand of gasoline? In general terms, explain how consumer and producer surplus will change as a result of this price increase?
The owner/manager of an athletic shoe store has revenue of $260,000 per year and labor, interest, inventory, and miscellaneous expenses of $200,000. The owner also owns the building the store is located in. What and how much are the store owner’s imp..
The university bookstores received 4 million euros from students in exchange for the books. Illustrate what is the total contribution to GDP from the above events.
Consider the quadratic VNM utility function U(w) = a + bw + cw2.
Do the three firm sizes have the same capital structure? Use the 0.10 significance level.a
How does choosing to trade impact specialization and opportunity cost?
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