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A retailer of winter coats prices each at $500 at the beginning of the selling season and after three months reduces the price of any unsold coats to $350. Using a simple demand function, show how charging two prices can dramatically increase profits for the retailer. [1]. Explain why the same argument does not work for toothpaste.
Suppose that during the past year, the price of a laptop computer rose from $2,100 to $2,550. During the same time period, consumer sales decreased from 470,000 to 363,000 laptops.
Sarah is awake for 100 hours per week. Using one diagram, show Sarah's budget constraints if she earns $6 per hour, $8 per hour, and $10 per hour. Now draw indifference curves such that Sarah's labor supply curve is upward sloping when the wage is be..
Here are four individuals telling you their stories of how they became unemployed. In a multi-paragraph essay, apply the theories of unemployment to explain the type of unemployment that each of these individuals is facing and explains which of these..
The author of the news article titled "Econ Disecon Scale Schools" in the News folder notes that for years school districts have been consolidated to form fewer, bigger districts because people thought bigger districts would enable the production of ..
The Millvale Private Insurance Company estimates that that there are 1000 businesses in Millvale that are facing the possibility of $200,000 in flood damage. Half of the businesses are located along the Allegheny River, like the Millvale Boat House, ..
Policymakers will seek to cure an economy suffering from demand-pull inflation by:
Your dental clinic provides 3,000 exams for private pay patients and 1,000 exams for members of a union. Your fixed costs are $50,000 and your incremental cost is $40. If the union negotiated a fee of $45 instead, what would you charge private pay pa..
q.calculate maxs marginal utility from windsurfing at each number of hours per day. does maxs marginal utility from
Because the Federal Reserve is not constrained by a fixed exchange rate, it is free to set monetary policy without concerns about the effect on the value of the dollar. How would the Fed’s actions during the 2007-2009 financial crisis have been conta..
Each firm can monitor the other's price very closely and can respond instantly
Examine how the Federal Reserve controls the money supply. In a paper, formulate how the independence of the Federal Reserve should or should not be modified in any way. Support your conclusions with references to the textbook and other resources.
Should Roscoe's Rascals match the price offered by the competitor.
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