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a) Define price elasticity of demand. Let the price elasticity of demand for 'hand sanitizer' is (minus) - 0.20; Is the hand sanitizer elastic / inelastic? Interpret your answer.
b) If a pharmaceutical company increased the sales of an essential drug from 43,000 to 47,000 units when it lowered price from $350.00 to $300.00. Calculate and interpret price elasticity of demand / supply. What can you conclude the revenue implication of this decision of price change?
What role do monetarists believe the government should play in the economy and why? After that has been discussed, what Keynesian and New classical economists believe about macroeconomic policy? Which role of thinking do you think you would fit in?
At an interest rate of 2 % per month, money will double in value in how many months? A manufacturer purchased $15,000 worth of equipment with a useful life of six years and a $2000 salvage value at the end of the six years. Assuming a 12 % interest ..
In response to the recession of 2008, the US Federal Reserve Bank made several efforts to increase banks excess reserves, decrease interest rates for lending, and increase lending. These "extraordinary measures" have been somewhat controversial (at l..
Explain why interest paid in the early years of a home mortgage is more helpful in reducing taxes than interest paid in later years.
How these earnings differences have changed over the past half century, as well as what factors are responsible for these changes.
The owner of a small retail store does her own accounting work. How would you measure the opportunity cost of her work?
You have $1000 to invest over an investment horizon of three years. The bond market offers various options. You can buy (a) a sequence of three one year bonds (b) a three year bond or (c) a two year bond followed by a one year bond. The current yield..
Explain how savers and borrowers might benefit from regulation of nation's financial intermediaries. Does regulation impose costs? How do these costs affect long-run economic development.
Firm A would hire 20,000 workers if the wage rate is $12 and would hire 10,000 workers if the wage rate is $15. Firm B would hire 30,000 workers if the wage is $20 and would hire 38,000 workers if the wage is $15. Which firm is more likely to be unio..
Our firm has economies of scope in tires and water bottles. The market for water bottles is competitive, and in the short run we are producing at P=MC
With 90% confidence, for sample mean 33.50, sample standard deviation 12.90, and sample size 35, what is the upper confidence limit with 2 decimal places?
Which of the following is true regarding a constant cost firm?
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