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Question: An increase in price reduces quantity demanded, while a fall in demand reduces price; A now economist might find this statement contradictory. By distinguishing between shifts of a demand curve and movements along a demand curve, explain the apparent contradiction.
Why does the assumption of independence of risks matter in insurance What would happen to premiums if the probabilities of houses burning were positively correlated Can you think of a situation where they might be negatively correlated
What is the average slope of the curve between the points for John's and Susan's salaries and taxes using the arc method? How would you interpret that value for slope?
Regression (4) includes worker-level fixed effects. The coefficient on years of education falls from .0637 in (3) to .0167 in (4). Is this a large change in economic terms? Explain.
What does it mean to say technological change is endogenous to an economy? How is this different from viewing technological change as exogenous?
Suppose two rms are competing in prices (Bertrand) in an industry where demand is p=200-4Q. (a) If both rms have MC=120, what is the equilibrium quantity for each rm? Prots?
A team of financial advisors guiding the launch of national newspaper has modelled the future circulation by the equation N=(1 - e^-kt). Make t the subject.
For the past month, it has processed 90 orders per day. What is the company's capacity utilization? What comments can you make regarding its processing rates? Can the company maintain this?
What are five comparisons and contrasts of a command and mixed economies?What are five comparisons and contrasts of a market and mixed economies?
Identify at least two professional organizations in your chosen field. Research the organizations to identify the Career services.
Suppose a monopolist is at the profit-maximizing output level. If the monopolist sells another unit of output:
Given the demand curve P= 2,000 – 2Q and marginal costs of MC = 1,100 + 2Q, the firm’s profit will maximize at equilibrium price and output of: Based on the demand and cost function in previous question, in a two-part tariff pricing strategy, what is..
ECON 203 6383 Principles of Microeconomics. Go to the internet and find a news article that discusses changes in demand and supply of particular goods
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