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A shipping service is offered at a flat rate of $7.5. If the rate increases to $8.25, some customers will not continue to use this service. The amount of customers who choose to leave the market of the shipping service accounts for less than 10% of the customer population. Do you think raising the price increases total revenue of this service?
Economic theory explains that markets generate wealth for individuals through the supply and demand for productive good/services. Does this help explain why you(studnet) are obtaining a college education?
The federal government's control of the money supply, which influences interest rates, is the primary tool that policy makers use to impact the macro economy.
A bank is offering a loan of $25,000 with a nominal interest rate of 18% compoundedmonthly, payable in 60 months.
The demand for company X's product is given by Qx = 12 - 3Px + 4Py. Suppose good X sells for $3.00 per unit and good Y sells for $1.50 per unit. a. Calculate the cross-price elasticity of demand between goods X and Y at the given prices. b. Are goods..
If at its next policy meeting the FOMC decreases its target federal funds rate, Describe the open market operations the Fed would enact to achieve a lower federal funds rate. Explain the effect this policy action is likely to have on the exchange rat..
The demand function for a good is Q = 200 – 10P where Q is the quantity and P is the price. Calculate the price elasticity of demand at prices of $5, $10, and $15 (i.e., as the price changes from $5 to $10 and as it changes from $10 to $15) to show h..
What happens to wages and employment if the government imposes a $2 payroll tax on a nondiscriminating monopsonist? Show on a graph and explain.
Grace owns and operates a small pottery firm.Grace hires an assistant at $12,000/year, pays annual rent of $5000 for her shop, and spends $20,000/year on materials. Calculate the accounting profit and the economic profit for Grace’s pottery business...
Do you think this pattern of trade is consistent with the principle of comparative advantage?
If the rise in money supply to M=700 is anticipated, what are the equilibrium values of the expected price level (Pe ), the price level and real output?
After taking an 8% inflation rate into account, what was his before-tax rate of return?
Strategy and Planning for Local Economic Development. Your primary Strategy is (Human Resource Development) Integration of your primary strategy with other development strategies such as ( Business Development, Community Economic Development, etc). B..
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