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What is the effect on the price of a recordable CD and the quantity of recordable CDs sold ifa. The price of an MP3 download rises?b. The price of an iPod falls?c. The supply of CD players increases?d. Consumers' incomes increase?e. Workers who make CDs get a pay raise?f. The events in (a) and (e) occur together?
Define cross-price elasticity, including substitutes and complements and provide a credible explanation of whether demand would tend to be more or less elastic for the share of consumer income devoted to a good.
You perform a travel cost study that looks at the relationship between the cost of visiting a lake (including costs of travel, value of time spent not working & any entry fees),
Stock registers an unexpected price decrease, Evaluate the value of your delta-hedged portfolio.
Sixteen states sue the major tobacco companies for billions of dollars because of tobacco-related costs in their Medicaid programs. Medical evidence that more than two cups of coffee a day (Considered by many to be a substitute for smoking) greatl..
Plot these curves on graphs. Compare the cost curves and discuss their characteristics.
Does the ability to move first give the employer an advantage? If so, how? As the employee, is there anything you could do to realize a higher payoff?
What difference does it make, if any, if technology is moving very fast in the market so that this game proves to be one-time-only simultaneous play?
Marketing mix is controllable set of activities that the firm employs to respond to the wants of its target markets. Make a report on the marketing mix and keep the following questions in mind:
Let u(x,y) = x1/3y2/3 and let I = 100, Px = Py = 1. Write the FOC for the consumer's UMP and compute the consumer's demand function. Let U(x,y)=5x+4y and let I denote income and Px,Py the prices of the goods. Compute the demand functions for good..
Suppose the production function is given by y = 4x1 + x2. If the factor prices are $4 for factor 1 and $2 for factor 2, how much will it cost her to produce 70 units of output?
Assume the demand curve for a monopolist is Qd=500-P, and the marginal revenue function is MR=500-2Q. The firm has a marginal and average total cost of $50per unit.
A small town is served by many competing supermarkets, which have constant marginal cost. Using the diagram of market for groceries, show the consumer surplus, producer surplus, and total surplus.
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