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How are people worse off when the price level rises as fast
How are people worse off when the price level rises as fast as their incomes? How, if possible, could demand-pull inflation occur before an economy was producing at full capacity?
If the organization wishes to restore sales to 10,000 per month determine the price they need to charge.
Explain how the invisible hand fights back when government try to overrule market forces with price controls.
If an owner of a industry wanted to make a trip for non-business use and their lost wages was not tax-deductible.
Illustrate the difference in the price elasticity of demand for an individual firm in a perfectly competitive industry as compared with a monopolist.
Illustrate what is the impact of these ratios on the level of new money that can be created given a $100,000 cash deposit into the banking system.
Using the IS/LM/BP model, demonstrate the effect of each of the following changes. Assume that the economy is a small country with perfect capital mobility and a flexible exchange rate.
Suppose that this price cut was completely responsible for its raise in revenues from 460 million yen in 1966 to 640 million yen in 1967. Compute the indicated arc elasticity of demand.
Explain why a monopolist will never set a price (and produce the corresponding output) at which the demand is price-inelastic.
Explain why does the magnitude of price elasticity differ in a and b above, although the same set of price-quantity combinations are used to compute the price elasticity of demand
Compute the effective price reduction resulting from the coupon promotion.
In Bayonne, New Jersey, there is a large beauty salon and a number of smaller ones. The total demand function for hair styling per day is Q=180-10P, where P is in dollars.
Use the following data for a firm's output at various levels of employment to calculate: (a) its marginal physical product of labour (MPPL) schedule.
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