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When do we say that two commodities are complements or substitutes? When do we classify goods as normal or inferior?
Evaluate the following statements as true or false and explain why.
a. A 20% increase in the price of XBOX will decrease the demand for XBOX.
b. If income decreases during a recession and the demand for XBOX also decreases, then XBOX can be considered an inferior good.
c. The equilibrium price for XBOX will decrease and the equilibrium quantity will decrease if the supply curve for XBOX decreases while the demand curve for XBOX remains constant.
The process of being served at a bank consists of two parts—the time waiting in line and the time it takes to be served by the teller. What is the standard deviation of the total time (X+Y) it takes to be served at the bank?
The unemployment rate will fall if potential output growth is:
Suppose the demand for this firm's services is given by P=2,000-Q and fixed costs are equal to $900,000. What is the optimal production rate?
where, q is the quantity demanded at price p when the person’s income is I. Assume initially that the person’s income is $40,000. Show work & calculations. At what price will demand fall to zero? If the market price for gizmos is $10, how many will b..
Please discuss the consequences of increasing interest rates on the US economy, taking into consideration the global ramifications.
The federal government currently taxes alcohol on the basis of the 100-proof gallon. (Alcohol that is 100 proof is 50 percent pure ethyl alcohol; whereas wine is usually about 24 proofs, and most beer is 6-10 proof.) How would alcohol consumption pat..
Cartco needs to borrow $4 million for an upgrade to its headquarters and manufacturing facility. Management has decided to borrow using a five-year term loan from its existing commercial bank. The prime rate is 3 percent, and Cartco’s current rating ..
How do economic decisions about scarcity, supply and demand, and competition affect individuals and groups?
Assume that marginal utility of good A is 4 times the marginal utility of good b. The firm can compute all points on its total cost curve if it knows.
What factors played a role in contributing to the debt crisis and assess whether they are (a) minor factors (b) medium factors or (c) major factors.
Some argue that emerging markets offer "the biggest growth opportunity in the history of capitalism". Do you agree? Please support your argument.
Can the tutors help me to understand how contra-revenue accounts work by providing examples of such accounts?
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