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Calculate the price elasticity of demand for the product below using average values for the prices and quantities in your formula. Over the price range in question, is this demand schedule price inelastic, unitary elastic, or elastic? Is total revenue greater at the lower price or at the higher price?
Price (per unit)
Quantity demanded
$4
22
6
18
Suppose you are reviewing an isocost graph. The axis on the graph shows capital units on the vertical axis, and labor units on the horizontal axis.
Compute the producer surplus from parts a and b. Are producers better or worse off as a result of international trade? Discuss why.
Throughout this course we have discussed the 'agency problem' - i.e., when the interests of owners and managers are not properly aligned.
Find the following: First solve this problem using an Excel spreadsheet approach and then do the problem using the optimization procedure; compare the answers for the two methods.
Suppose two identical firms produce widgets and they are the only firms in the market. Find the Cournot-Nash equilibrium.
Suppose that in response to learning that some sick individuals were denied health insurance, the government mandates that insurance companies must offer insurance to everyone at unregulated rates.
Changes in government spending and interest rates
Draw the demand curve for the bridge crossings. How many people would cross the bridge when there were no toll? What is the loss of consumer surplus associated with charge of toll of $4.00
What money supply must the Bank of Canada set next year if it wants to keep the price level stable? What money supply must the Bank of Canada set next year if it wants inflation of the ten percent?
List and explain the sources of expenditures in economy by focusing on the 4 major sectors of economy.
Overview of the project's objectives and scope
Use the data below to find out the growth of income per person (over the entire period, not an annual basis) between the two years listed.
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