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A) Under what circumstances will a tax on a product be passed along to consumers?
B) When the price of a movie ticket changes from $5 to $7, the quantity demanded decreases from 200 to 120 tickets per day. Use the mid-point formula to calculate the price elasticity of demand. Is the demand for movie tickets elastic or inelastic?
C) Suppose the price elasticity of demand for petrol is 0.2 in the short run and 0.7 in the long run. If the price of petrol rises 28 per cent, what effect on quantity demanded will this have in the short run? In the long run?
Two amusement parks that are located on either side of a highway are considering promotional advertising campaigns to stimulate demand. If both parks advertise, then both will experience a $20 thousand increase in profits. If Park A advertises and Pa..
If the workforce is growing by 1 percent a year but productivity doesn't improve, how fast can output increase?
What do you understand by "Early Warning Systems" for banking crises? What is the CAMELS approach?
Holding everything else constant, if interest rates increase:
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.
Why is it unlikely that a firm would sell at a price and quantity where its demand curve is price inelastic?
Recommend at least two (2) strategies an administrator can apply to ensure that the budget is performing according to the established performance indicators. Justify your response.
If the Federal Reserve had maintained a constant money supply in the face of this change, what would have happened to the interest rate.
Suppose both Ross and Vivian produce butter and cheese. When Ross works for 10 hours a day, he produces 6 pounds of butter and 24 pounds of cheese. When Vivian works for the same hours, she produces 20 pounds of cheese and 40 pounds of butter. Ros..
Price for a firm under monopolistic competition is: An industry with a large number of relatively small firms producing differentiated products in a market with easy entry and exit firms is: Refer to the above data for a monopolist. This firm will ma..
If the central bank (the Federal Reserve) keeps printing money and lowering the interest rates to get consumers buy and businesses to borrow money, then the economy will improve. Do you agree with the statement?
Consider a borrower that is approved for a standard 10-year, fully amortizing house mortgage with an original balance of $500,000 and a note rate
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