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Description of Cross elasticity of demand
Always round tire finds the following cross elasticities:
A. Demand for tires / price of batteries = .45
B. Demand for tires / price of brake jobs = -0.70
C. Demand for tires / pric of an oil change = 0.002
Discuss implications for pricing of batteries, brakes and oil changes on the sale of tires.
Provide an examples of how each industry practices price discrimination. What are the short and long term strategic reasons these industries employ tiered pricing.
E;lucidate whether each among the subsiquent is an example of an automatic fiscal stabilizer.
In the country A, all wage contracts are indexed to inflation. That is, each month wages are adjusted to reflect increases in cost of living as reflected in changes in price level. Explain answer with aggregate supply and aggregate demand curves.
Allan Sports sells snowmobiles in a Northern Suburb of the Twin Cities. For the third year in a row sales have been dismal.
Write down the effect on the real wage and hours worked in the short run.
Write an equation that expresses the money supply multiplier (for M1) in terms of its three determinants.
Suppose Bank of Canada (BOC) purchases $100 million worth of government bonds from a chartered bank. Assume BOC imposes 5% legal reserve requirement ratio to the banking system.
There is no Constitutional needs which individual states must accept monies offered by federal government to support requires affecting their citizens.
Explain the impacts of an expansionary fiscal policy such as a tax cut on the levels GDP, Consumption, Investment, interest rate and unemployment and price.
The table below is a production possibility table for the fictional country of Myopia. Use it to construct the corresponding production possibility curve.
Provide an example of how fiscal also monetary policies compliment or work against each other.
Is the compensation scheme at your present place of employment consistent with a reasonable solution to the agent principal problem?
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