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A study conducted by the Australian Medical Association suggests that every 10 % increase in the price of cigarettes is associated with a 5 % decrease in the quantity of cigarettes demanded.
a) Use a figures and solution from this study to calculate the price elasticity of demand for cigarettes.
b) Based on your findings, does this suggest that increasing the price of cigarettes will substantially decrease smoking.
Derive the aggregate demand (AD) function using the autonomous variables of AD, Taxes, Transfer payments, and the MPC
Good exterior home maintenance leads to higher property values throughout a neighborhood. Of course, the gains in property values must be balanced against the opportunity cost of time for those who do the maintenance. What is the optimal amount of ti..
A sporting goods store has estimated the demand curve for a popular brand of running shoes as a function of price. Compute demand elasticity using the midpoint formula.
A film processing laboratory uses 37.5 liters of developer per week and is open for business 50 weeks in a year. Administrative and other costs of ordering a consignment of developer are $15 and it costs $10 to keep one liter of developer in stock fo..
1. Is there asymmetrical information inherent in this contract? 2. Is there adverse selection consequences inherent in the contract?
For a company to convince consumers to use their products repeatedly, they must:
Consider a simultaneous move game between a union and a company. If both the parties bargain hard, each would gain nothing. If only one party bargains hard the accommodating party gets a profit of $1 million while the bargaining party gets a $5 milli..
The German philosopher Immanuel Kant condemned Utilitarianism as an immoral ethical theory mainly because:
John Maynard Keynes said in response to a question, "Have you ever seen anything like this [Great Depression] before in history?
In 1975, President Ford proposed a $28,000 cut in government spending and a $28,000 tax cut, what is the result of the two actions on the economy? Show your work, use the MPC of .80. Hint: notice that the numbers are the same -$28,000.
Imagine that you borrow $176,000 for 15 years. The interest charged will be lower given the shorter life of the loan.
Write a C++ class definition (specification file) for an abstract data type describing a bookstore inventory. Each book has the following attributes:
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