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The differences in currency values can affect our ability to buy imports or sell exports, affecting our standard of living. This effects of currency crises in other nations are not limited to those nations; they can affect our economy and our lives in important ways.
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A restaurant/bar is analyzing its pricing of beer. It has determined that the price elasticity of demand for beer is −0.8; the cross-price elasticity for wine with respect to the price of beer is 0.9; the cross-price elasticity for appetizers is -1.4..
Your firm’s research department has estimated the income elasticity of demand for Art Deco lawn furniture to be -0.85. You have just learned that due to an upturn in the economy, consumer incomes are expected to rise by 5 percent next year. How will ..
When calculating a sample size, how can a researcher decide the level of accuracy to use? What about the level of confidence? What about variability with a percentage?
The government finds that a lot of employers are prejudiced, and discriminate against foreign workers. The secretary of labor offers the President three options to deal with this problem: Arrest all employers who are hiring foreign workers at less th..
Calculating savings using the goods market equilibrium. Assume a closed economy (NX=0). Suppose net taxes are $100 billion. Government spending is $125 billion. Investment is $50 billion and consumption is $100 billion. Calculate public savings, priv..
What might the likely effect be for the world economy and particularly the United States economy if prices of all goods from China increased? How might this affect your disposable income?
If the government imposes a tax of $.25 on each papaya produced, will this cause a change in supply or quantity supplied?
Now suppose the economy currently produces 2,500 garments of clothing and 3,000 bushels of wheat, illucidate which is represented by point B. Under these conditions, the opportunity cost of producing an additional
What does the term Democracy mean and where is it from? Why is it relevant to our understanding of U.S. Politics? Why is it important? How does it help us think about politics—either meaning “who get’s what, when, and how” or “the process of improvin..
Suppose that the market demand for medical care is summarized by the demand function: Qd = 500 – 4p and the market supply is summarized by the inverse supply function: P = 25 (i.e., horizontal supply curve at price of 25). Calculate the equilibrium q..
There is a pre-tax price of 5 cents per ounce on sugary beverages and they are imposing an excise tax of 1 cent an ounce. The per capita consumption is 100 ounces. Price elasticity is -1.2. What is the post tax per capita consumption?
Suppose the market demand function (expressed in dollars) for a normal product is P = 100 – 2Q and the Supply Curve is P= 10 + Q, where P is the price of the product and Q is the quantity demanded or supplied. What is the equilibrium price and quanti..
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