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a. List the determinants of elasticity of demand (Ed) (5)
b. Explain what each determinant means. (5)
c. Identify two examples from your own personal or professional life that illustrates EACH one of the determinants of elasticity. (10)
d. How would a University rule that states all students must use a certain Dell laptop impact your Ed for laptops. Explain your answer. (10)
e. Raising bridge and tunnel tolls almost always leads to more revenue for the government, how can this be so given the law of demand? (10)
What will happen to GDP and employment? What do you think will be the impact on banks and other financial institutions? Do you agree with the bill?
Suppose there is a broad increase in the price of stocks that causes an increase in the real wealth of individuals. Consumer spending rises in response to the increase in wealth. In the short run, this will cause
What is average length of "place order line". What is average length of "pick up line". What is average number of customers in drive through area.
q.jennas boss has decided to pay her a one-time bonus of 5000. she decides to save the money until she retires 4 years
Suppose that doctors’ visits cost $20, and the typical consumer has an income of $100. Consumers spend all of their incomes on doctors’ visits and a composite good that costs $1 per unit. Draw a graph that illustrates the consumer’s budget constraint..
When there is an increase in the expected rate of inflation, will the nominal and real interest rates on new loans increase, decrease, or stay constant?
Your article shows money performing (or failing to perform) at least one of the following functions: (a) medium of exchange, (b) store of value, or (c) standard of value. Which one of those functions does it show? The event may have occurred in the p..
q. college enrolment increased at the same time that average tuition rose dramatically. does this contradict the law of
q1. the taxing agency in your state would like to impose a sales tax in a way that minimizes deadweight loss. to
The concept of investment in human capital indicates that:
Draw a diagram illustrating the profitmaximizing output for the monopolist with abnormal profit. The diagram should contain short-run average cost, average variable cost, short-run marginal cost, and marginal revenue curves and shade area that repres..
You received a check from the bank for $18000. You know $7000 was deposited when you turned 1. Using your current age (please state it), what was the effective annual interest rate? What is the nominal rate if it was actually compounded semi-annually..
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