Does the marshall-lerner condition hold

Assignment Help Business Economics
Reference no: EM131966466

Suppose that εD = 0.667 and εFD = 0.75 for given country:

a) Are import demands elastic or inelastic in this case?

b) Does the Marshall-Lerner condition hold? How do you know?

c) Suppose that domestic price of this country's imports rise by 10% following a devaluation. What will happen to the quantity that it imports?

Reference no: EM131966466

Questions Cloud

What is your monthly mortgage payment : What is your monthly mortgage payment? If you wish to pay off the balance remaining on the mortgage loan today.
Proceeds are paid out to investors in either legal form : what is the advantage to being a partnership (compared to a corporation) if all of the proceeds are paid out to investors in either legal form?
Find the value of the open economy multiplier : a) Find the value of the open economy multiplier b) What is the equilibrium level of GDP for this economy?
Use for preferred stock in computation : What weight should you use for preferred stock in the computation of OMG’s WACC?
Does the marshall-lerner condition hold : a) Are import demands elastic or inelastic in this case? b) Does the Marshall-Lerner condition hold? How do you know?
Discuss about the communicating across cultures : Find a peer reviewed article published during the last years to write a summary and submit it as an e-Portfolio assignment.
Measures the company return for the past two years : Which of these metrics do we believe best measures the company’s return for the past two years?
Calculate the net reproductive rate : Calculate the net reproductive rate (R0) and determine whether this population is growing or declining. Show all calculations in Excel
Explain advantages do you see in using both types of methods : What advantages or disadvantages do you see in using both types of methods in a nursing study? Support your answer with current evidence-based literature.

Reviews

Write a Review

Business Economics Questions & Answers

  Suppose two firms sell an homogeneous product

Suppose two firms sell an homogeneous product; they compete in prices. Their respective marginal costs are MC1 (q) = 10 and MC2 (q) = 20. Find the prices that form equilibrium (for simplicity and reality, assume that prices are quoted in units no sma..

  Explain how much profit will the perfectly competitive firms

Explain how much profit will the perfectly competitive firms earn. Explain how much profit will the monopoly firm earn.

  Model of money supply under fractional-reserve banking

To increase tax revenue, the US government in 1932 imposed a two-cent tax on checks written on deposits in bank accounts. Use the model of the money supply under fractional-reserve banking to discuss how this tac affected the money supply.

  Determine profit-consumer surplus-welfare-deadweight loss

The single price monopoly faces a demand curve of p=90-Q and a constant marginal (and average) cost of m=$30. Find the profit maximizing quantity (or price) using math. Determine the profit, consumer surplus, welfare, and deadweight loss.

  Hr programs can benefit from methods

How can you apply job analysis methods to your organization and what kind of HR programs can benefit from these methods?

  Optimistic conclusion-with right legal-procedural safeguards

In "In Praise of Big Brother" (pp. 203-215), James Stacey Taylor argues for the optimistic conclusion that, with the right legal and procedural safeguards, large-scale governance surveillance would have many positive consequences. What are Taylor's b..

  What would this do to circular flow of income and spending

Say y store it as cash in a mayonnaise jar in kitchen cabinet. What would this do to circular flow of income and spending. How would businesses react to household hoarding.

  Why would secrecy in operating a business be important

Why would secrecy in operating a business be important to an owner? What form of organization would be most appropriate for a business requiring great secrecy?

  What is the approximate opportunity cost of producing

If the economy is currently producing 40 units of cotton and 6 units of wheat, then what is the approximate opportunity cost of producing 10 more units of cotton?

  Determine the pareto superiority

Why is it complicated to determine the Pareto superiority of how incentives are allocated? 3 sentences please

  Create a business philosophy

Create a 12 page argumentative/persuasive research essay for OR against a business decision OR an organizational plan OR business philosophy

  Identify any major market failures

Supporters of accelerated depreciation in 1981 acknowledged that it favored heavy industry ("smokestack America") but argued that this was desirable. Why do economist tend to look askance at such arguments? Can you identify any major market failures?..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd