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Suppose that C = a + bY , where C =consumption, a = consumption at zero income, b = slope, and Y = income.
a. Are C and Y positively related or are they negatively related?
b. If graphed, would the curve for this equation slope upward or slope downward?
c. Are the variables C and Y inversely related or directly related?
d. What is the value of C if a = 10, b = .50, and Y = 200?
e. What is the value of Y if C = 100, a = 10, and b = .25?
Price comparison services on the Internet (as well as shopbots) are a popular way for retailers to advertise their products and a convenient way for consumers to simultaneously obtain price quotes from several firms selling an identical product.
The World Bank is at present advising newly industrialized countries on how to encourage growth and they have asked for your help.
Examine present global economic and political policies and their impact on business decisions.
Elucidate which of the following theories of expectations holds that individuals usa all information available in forming expectations.
illustrtae what are some of the price and how do expectations inluence the effects of inflation.
The agricultural market for corn usually can be characterized as a purely competitive industry. How might the following events affect the shot-run cost curves and output for a firm in the industry?
Assume a typical customer’s inverse demand function for bottled water at a resort area where one firm owns all the rights to a local spring is given by P = 15 - 3Q.
The absolute value of coefficient of the price elasticity of demand.
According to moderate growth your return will be 8 percent. If there is a rapid expansion, your portfolio will return 15 percent.
The FCC has hired you as a consultant to design an auction to sell wireless spectrum rights. The FCC indicates that its goal of using auctions to sell these spectrum rights is to generate revenue.
As the research begins to come in about your expansion opportunities abroad, the marketing department has discovered that the price elasticity
A profit-maximizing company operating in a perfectly competitive market can sell products for $100 a unit. The company has a cost function represented by:
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