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Suppose that a 10% decrease in the price of a product has resulted in a 30% increase in the quantity demanded for a product. Is demand elastic or inelastic in this price range? Explain and demonstrate using the elasticity formula.
Describe the equilibrium price and quantity, producer surplus and consumer surplus.
With gasoline prices increasing rapidly in recent years, consumers have moved to high miles-per-gallon (mpg) vehicles, in particular hybrid autos that rely on a battery as well as a gasoline engine for even greater mpg. Generate a cost function for e..
Consider a monocentric city where the cost of commuting is $20 per mile per month. A household located 5 miles from the city center lives in a 1,000 square foot house that costs it $500 per month. Nonland costs per house are $100 per month and there ..
Human Capital Investments. Suppose that the marginal cost of an additional unit of human capital is given by MC = 400 and the marginal benefit is given by MB = 800 ? 25HC , where HC is the number of units of human capital. Graph MB and MC as a functi..
What is the importance of an efficient forecasting demand for a product and its relationship with economic gain?
Find the subgame perfect equilibria of the variant of the game in which the post-entry competition is a game in which each firm chooses a price, rather than an output.
q1. if the variable is almost normally distributed does that mean you use common distribution?use the data set noting
Determine the after-tax cash flows for this investment. make adjustment in the DDB depreciation charges if necessary in any year in light of the SV of $20k
If a firm can sell its product for more than its fixed costs, but not for more than its totals costs:
What is a minimum monthly rent required to make this investment economically acceptable if the company's minimum attractive rate of return is 6% per year, compounded monthly?
Analysts have estimated the present values of the following effects over the expected useful life of the pool: PV (million dollars) State grant: 2.2 Construction and maintenance costs: 12.5 Personnel costs: 8.2 Revenue from county residents: 8.6 Reve..
Suppose a wage increase from $19 to $21 an hour increases the number of job applicants from 50 to 64. What is the price elasticity of labor supply?
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