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For each of the following pairs of goods, would you expect the cross-elasticity of demand to be positive or negative? Large (in absolute value) or small? Defend your answers:
a. Computer hardware and computer software.
b. Antibiotics and over the counter decongestants.
c. Gasoline and automobile repairs.
Illustrate and explain the interaction of households, businesses, government and global markets in the circular flow of economic activity.
A farm operator has asked you to help him/her determine the quantity of water that should be applied to a crop under irrigation.
Find out an article which is related to health economics from health journal. Some possible sources include Health Affairs
What were some of causes of stagflation of 1973 and 1979? In what ways were these episodes of stagflation different from great depression of the 1930s?
What are the advantages of Fed increasing interest rates if the GDP gap is positive?
Assume you own a home re-modelling company. You are currently earning short-run profits. The home re-modelling industry is an increasing-cost industry.
You are a manager in a perfectly competitive market. The price in your market is $35. Your total cost curve is.
During the period of airline regulation, the government set airline fares and regulated an air carrier's entry into and exit from particular markets.
What is the growth rate of nominal GDP in the economy?An adverse supply shock raises the inflation rate associated with every output ratio by 3 percentage points. Draw the new short-run Phillips Curve.
Suppose there is an increase in risk aversion by wealth holders in the sense that, other things equal, they want to hold more of their wealth in money (bank deposits) and less in securities.
Two identical firms face linear demand. Market demand is given by P=30-Q. Compare graphically consumer and producer surplus in Cournot and Stakelberg equilibria to perfect competition.
This product, called Red Hat Linux, is a potential replacement for UNIX and other well-known operating systems. If you were in charge of pricing at Red Hat, what strategy would you pursue? Explain.
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