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The XYZ Co. sells widgets for $10 each. At that price it sells 200 per week. When it reduces its price of a widget to $9, it sells 250 per week. Calculate the price elasticity of demand. Is it elastic, inelastic, or unitary?
If the Fed didn't change the money supply, what would happen to the interest rate and if the Fed wanted to keep the interest rate constant following this money demand shock, how would it change the money supply?
Find out the equilibrium market price. Find out the profits of the leader and the follower
The city of Bookburg initially allows only one book store, which sells books at a price of $20 and an average cost of $11. Suppose the city eliminates its restrictions on book stores, allowing additional stores to enter the market. According to an..
Explain how much should the firm charge to earn the maximum profit during off peak times.
Jonathan accepted the offer and, eager to please her, spent lavishly in preparing for the evening. His purchases included a new blazer, new shoes, and expensive floral arrangement, and champagne. At the appointed time, Jonathan arrived at Rosalie'..
annual net income was $50.72 million. If EMC's estimated opportunity cost of funds is 10%, as an analyst how would you view the acquisition? Would your conclusion change if you knew that EMC had credible information that the economy was on the ver..
The government decides that eating ice cream is a socially desirable activity and passes a law giving consumers 50 cents for each ice cream cone they eat. What is likely to happen in the marketplace once this policy is in effect What are consumers..
How will high entry barriers into a market influence (a) the long-run profitability of the firms (b) the cost efficiency of the firms in the industry (c) the likelihood that some inefficient high-cost firms will survive
Assume the price of the futures contract changes as shown in the following table. Enter the relevant information into the table. Show your calculations.
Illustrate what would happen to general and specific training in labor markets.
The inverse market demand curve is P=140-Q, and inverse supply curve is P=20+Q. Suppose that the market is competitive,
During the Great Depression, federal government swung into action to help farmers. In 1933, it established a system of price support for several agricultural products.
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