Reference no: EM131112617
State in words and show with a graph the effect of the following events on equilibrium price and quantity of the market given.
a. Netflix increases it’s price by 15%. Market: Redbox DVDs.
b. The price of cheese increases by 20% Market: Pizza.
c. Income in the US increase by 10%. Market: Easy Mac (an inferior good)
4. Match the following words with their definitions:
a. Luxury ____1. Cross price elasticity of demand is negative.
b. Complement ____2. Income elasticity of demand is negative.
c. Necessity ____3. Income elasticity greater than one.
d. Substitute ____4. Income elasticity less than one.
e. Inferior good ____5. Income elasticity of demand is positive.
f. Normal good ____6. Cross-price elasticity of demand is positive.
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Long-run competition-building production facilities
: Long-run competition. Most of the cost of a new airplane is in the research and development and in building production facilities. By contrast, the marginal cost of producing another plane is relatively low. a) (2 points) You have been hired by Boein..
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Supply in the foreign exchange markets to respond
: If, at the current exchange rate between the dollar and the Norwegian kroner of 5.78 kroner per dollar, the dollar is "overvalued," how do you expect demand and supply in the foreign exchange markets to respond?
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You earn income in dollars-dollar depreciates against peso
: you borrow 10,000 pesos, you earn income in dollars, the dollar depreciates against the peso, you must pay back the loan in pesos. you borrow $10,000, you earn income in pesos, the dollar depreciates against the peso, you must pay back the loan in do..
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What are the total costs-revenues and profits
: Two clinics want to merge. The price elasticity of demand is -0.20, and each clinic has fixed costs of $60,000. One clinic has a volume of 7,200, marginal costs of $60, and a market share of 2 percent. What are the total costs, revenues, and profits ..
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Events on equilibrium price and quantity of market
: State in words and show with a graph the effect of the following events on equilibrium price and quantity of the market given.
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Disadvantages of cost-plus pricing except
: All of the following are disadvantages of cost-plus pricing except:
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Name two advantages of the behavioral model
: Name two advantages of the behavioral model.
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Determine the present value of the life-cycle cost
: If the cost of building a new road is $2,500,000 per linear-mile, and the expected annual maintenance cost is $350,000 per linear-mile for 20 years of service-life. At the end of its service-life, the road will be demolish at a cost of $750,000 per l..
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Fines vs probability of detection and punishment
: In the context of criminal law, discuss the comparative advantages and disadvan- tages of the following pairs: Fines Vs. Probability of ‘Detection and Punishment.’Fines Vs. Prisons. Maximum-but-Uniform fine Vs. Incremental-Fine
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