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Consider the following pairs of goods. For which of the two goods would you expect the demand to be more price elastic? Why?
a. water or speedboats
b. blood pressure medicine or nasal decongestant spray
c. ice cream or food in general
d. gasoline over the course of a week or gasoline over the course of a year
e. cars or BMWs
She put her savings into mutual fund that paid a nominal interest rate of 7 percent a year. CPI was 165 at beginning of year and 177 at end of year. Illustrate what was real interest rate that Sally earned.
While attempting to back up some files on your computer on an optical disc, the disc burning software on your computer reports a problem and ejects the disc. When you check the contents of the disc, the files you are trying to back up are not ther..
Consider the following production function f(k,l) = k^1/3 + l^1/3. Suppose the government taxes labor at by an amount t per unit of labor. Rewrite the long run cost function including the tax.
What would the impact of each of these events have, using the IS-LM model and what would be the adjustment to short run equilibrium?
Suppose the cost function is a multivariate of the type: where Q is output and K, capital; L, Labor; and M, materials are inputs. Find the marginal products of the inputs. Discuss the returns to scale. What is the relationship between returns to scal..
Explain the potential impact the high cost of college could have on the unemployment rate. Explain the potential impact the high cost of college could have on the labor force participation rate.
In January 2007, XM enjoyed about 58 percent of satellite radio subscribers, and Sirius had the remaining 42 percent. Both firms were suffering losses, despite their dominance in the satellite radio market.
The players are needed to simultaneously and independently select positive numbers. Find out the Nash equilibrium of this game.
Suppose you are receiving a large shipment of Gizmos. The manufacturing standards provide that 1% of Gizmos turn out defective. You randomly select a sample of n = 25 from each lot and return the shipment if more than 2 are found defective. The proba..
Dirt Diggers (DD) is an excavating firm that excavates roadside ditches for laying drainpipe. Its output follows the following production function:
using IS-MP and PC graphs analyze the following scenario on the economy specifically, how and why will real output (GDP) be affected in the short run.
Nicole Tipton and Sadik Seferi owned and operated a restaurant in Iowa. Acting on a tip from the local police, agents of Immigration and Customs Enforcement.
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