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Q2. Assume you are a painter also the price of a gallon of paint rises from $3.00 a gallon to $3.50 a gallon. Your usage of paint drops from 35 gallons a month to 20 gallons a month. Perform the following:
1. Compute the price elasticity of Demand for paint also Elucidate how your calculations.
2. Decide whether the Demand for paint is elastic, unitary elastic or inelastic.
3. Elucidate your reasoning also interpret your results.
Me Lisa purchases shares in government bond mutual fund .is this included in the aggregate demand component investment.
A car manufacturer claims that its vehicles average at least 25 miles per gallon.
A brewery is considering two potential production investments.
Now illustrate what is the price elasticity of demand. Illustrate what is the cross-price elasticity of demand.
Assume the current rent is also equal Illustrate one would commonly expect for the future.
Use a production possibilities frontier to illustrate the production options. Be sure to label your drawing. Identify a point that is efficient.
If a country's currency's external value is tied or pegged to the currency values of the country's leading trading partners, this arrangement
The rate that does aggregate output, aggregate investment, aggregate consumption as well as per- capita income grow in this steady state.
One organization must have high fixed costs also low variable cost also the other must have low fixed costs also high variable costs.
A firm in a perfectly competitive market invents a new method of production which lowers its marginal costs. Illustrate what happens to its output.
Is the industry or industries in which the firm operates conducive to abnormally high rates of return.
If your employees are self-interested, how much output would you expect each individual worker to produce absent monitoring.
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