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Suppose that at a price of $55, 100 units were sold while at a price of $33, 153 units weresold. WITHOUT calculating the price elasticity value, can you determine whether demand iselastic, unit-elastic, or inelastic in this price range?
Consider the market for music downloads. The market demand curve is given by P=10-(1/6)Q. Where Q is the number of downloads sold per hour and P is the price per download. Apple is the dominant firm in this market with constant marginal costs MC=6.
Suppose that the U.S. dollars-Mexican pesos exchange rate is fixed by the U.S. and Mexican governments. Assume also that labor is mobile between the United States and Mexico due to low transportation costs. Which of the following situations is likely..
Does consumer surplus increase due to this price ceiling. Does social welfare increase as a result of the price ceiling.
After viewing the video clip from Cool Hand Luke, first consider how marginal benefits and marginal costs fit in to Luke's decision, and how the concept of diminishing marginal utility is at work as Luke eats more and more eggs.
Discuss. “The internationalization of banking has weakened national safeguards against banking collapse, but at the same time it has made the need for effective safeguards more urgent.”
Suppose a US company purchases 1 million Euros’ worth of automobiles from a German car manufacturer, and pays with the proceeds from the sale of Eurobonds. Calculate the impact (debits and credits) of each of these transactions for the balance of pay..
Job B looks more attractive by using simple arithmetic in a static world; but since these will occur in different periods, we know that the best way to evaluate each one is by getting the net present value of each job using each individual's discount..
Between 1950 and 2006, the price of wheat fell dramatically from $15.81 per bushel to $3.40 per bushel. Suppose b/w 1950 and 2006, the supply of wheat increased substantially due to increases in productivity, shifting the wheat supply curve to the ri..
Which of the following demonstrates that a country has an unstable business environment?
Suppose that the 5 firms in Industry A have annual sales of 25, 25, 20, 20, and 10 percent of total industry sales. For the five firms in Industry B the figures are 50, 15, 15, 10, and 10 percent. Calculate both a 4-firm concentration ratio and the H..
For the past several years, in order to sustain sales and profit growth, Harley has relied heavily on baby boomers to buy motorcycle in an effort to recapture their youth and rebelliousness. However, that market segment is quickly aging out of mainst..
The following questions are based on fixed exchange rate and/or flexible exchange rate regime from the perspective of macroeconomic policy implications in an open macroeconomic model. Assume a country is in a fixed exchange rate regime such as China...
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