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A theater on Broadway recently increased the price of a ticket for a popular play by 8%. The attendance went down by 3%. What is the price elasticity of demand for tickets for this play? What factors, besides the increase in the price of the ticket, could have contributed to the reduction in attendance? Should the theater further increase or instead decrease the price of the ticket? What would be the optimal price of a ticket?
Be sure to explain your calculations
Why wouldn't the large corporations just pay more and outbid small businesses for the labor without a minimum wage?
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A pure monopolist determines that at the current level of output the marginal cost of production is $2, average variable costs are $2.75, and average total costs are $2.95
How could the existence of unemployment benefits or other transfer programs reduce the severity of an economic contraction?
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