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During spring break, students have an elasticity of demand for a trip to Florida of -3. How much should an airline charge students for a ticket if the price it charges the general public is $360? Assume the general public has an elasticity of -2.
Suppose capital is fixed at 16 units. If firm can sell its output at a price of $100 per unit and can hire labour at $25 per unit, Explain how many units of labour should firm hire in order to maximize profits.
Critically compare and contrast the policy approaches of TSCA and FIFRA. In your view, which of these is more effective in preventing pollution? Explain.
Draw the intertemporal budget constraint. Be sure to label the axes, endowment point and the absolute value of the slope. Suppose that the individual’s interest income is taxed at 25% in both periods, and that interest payments are deductible at 25%...
According to the political business cycle theory, if the Fed wanted to see a President re-elected, prior to the election it might
We are concerned with the water quality in the Mississippi River. There are 4 groups of people who use the river: environmentalists, fishermen, sightseers, and wastewater plant executives. What is the efficient level of water quality?
Consider the following distribution of income in a 12 person economy, with the modern urban wage=3, the traditional rural income=1 and the informal urban wage = 2: (1,2,3,1,2,3,1,2,31,2,1). the poverty line is at 1.3. What is the level of absolute po..
Consider the causes of the deficits also surpluses also provide your own insight as to whether these surpluses or deficits have a "positive" or "negative" effect on our economy.
Which of the following shifts the short-run, but not the long-run, aggregate supply right?
You are a manager in charge of monitoring cash flow at a company that makes photography equipment. Traditional photography equipment comprises 40 percent of your revenues, which grow about 2 percent annually. If the own price elasticity of demand for..
The market system cannot supply each person with an unlimited amount of resources, so choices must be made. Given the following events, Identify whether this event is a macroeconomic issue or a microeconomic issue and explain why you came to that con..
q.assume that the price elasticity of demand for cigarettes is .46 in the short run and 1.89 in the long run the income
draw a correctly labeled loanable funds graph that shows what happens to real interest rates for each of the following
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