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The price elasticity of demand for imported mineral water is estimated to be ?0.20 over a wide interval of prices. The federal government decides to raise the import tariff on foreign mineral water, causing its price to rise by 20 percent.
a. Will the quantity demanded on imported mineral water rise or fall, and by what percentage amount?
b. What is the percentage change in the total revenue after the tariff increases?
If a monopolist produces clear spring water at zero total cost, its total revenue will be maximized where,
What would happen to the budget deficit if the: GDP growth rate jumped from 1 percent to 3 percent? Inflation increased by 2 percentage points?
If your analysis period (study period) is just three years, what should be the salvage value of project A2 at the end of year 3 to make the two alternatives economically indifferent?
What adverse effects on the domestic economy may follow from (a) a depreciation of the exchange rate and (b) an appreciation of the exchange rate.
This question is based on The Economist Magazine's Schools Brief: State and Market - which has its own module in Etudes
What are the three basic functions of money? Describe how rapid inflation can undermine money’s ability to perform each of the three functions. What are demand shocks? Give an example of a positive and a negative demand shock. What is the difference ..
Which of the subsequent correctly describes an external benefit resulting from A person's purchase of flu shots from a doctor.
A binding price ceiling...
q1. what is true about using the least squares method of plotting an estimated regression line on a scatter diagram?q2.
Suppose the Demand for baseballs is given by Q = 240 – 8P. What is the price elasticity of demand when P = 6? At what price will Total Revenue be maximized?
Assume the full- unemployment rate is 5% . What could the Fed do in 2002-2003 in order to bring the economy back to full-unemployment ? What did the Fed actually do? Explain in detail
Top four firms in Industry B have market shares of top four firms in Industry B have market shares of 15,12,8 and 4 percent, respectively. Calculate four-firm c0ncentration ratios for two industries. Which industry is more concentrated.
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