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A policy adviser suggests that in order to improve its balance of trade with China, Canada should lower the price of some heavy machinery equipment. Suppose the demand function for this equipment is where Q is quantity per year and p is price (measured in hundreds of thousands of dollars).
Find an expression for the price elasticity of demand for this equipment. Suppose the current p is equal to 3; at this price, is the demand elastic or inelastic?
Continuing from a), explain (in words) whether you think Canada will succeed in raising its revenue if the policy adviser's suggestion is implemente
In the solow model, the level of investment depends on the level of domestic savings. If the level of domestic savings is too low to allow the economy grow to the Golden Rule level without taxation, what other sources could this economy try to tap in..
Use short-run supply demand analysis to indicate how equilibrium price and quantity will change if the following changes occur in the economy. Draw a supply and demand curve for each answer and provide a brief one sentence explanation. Potatoes are a..
An essential issue in international business is determining which components to manufacture in-house and which to outsource to independent suppliers. Is outsourcing a good idea?
Using the assumption of the past predicts the future write an equation for the weight forecast. Do the same for the assumption of cause and effect. How does the concept of error play into each?
Why does the U.S. Stock Market often experience large swings following the monthly release of the monthly unemployment report from the U.S. Bureau of Labor
Using key concepts discussed in the classes, explain why there is a large role of government (either local or federal) in the transportation industry in the real world. Specif-ically, what types of government policies do you expect in the industry? U..
A hot dog vendor faces a daily demand curve of P = 130 - .125Q, where P is the price of a hot dog in cents and Q is the number of hot dogs purchased each day.
Analyze the various means of taxation available to finance the government and evaluate the alternatives to taxes. Identify if there is an economic limit to the extent to which the government can increase taxes. Justify your response.
Should the United States implement national agricultural policies and associated programs that require/promote/incentivize sustainable agricultural practices
Brian lives in Chicago and runs a business that sells pianos. In an average year, he receives $735, 000 from selling pianos. Of this sales revenue, he must pay the manufacturer a wholesale cost of $435, 000; he also pays wages and utility bills total..
Explain the "Exorbitant Privilege" that the U.S. enjoys as the issuer of the global reserve currency but also the little discussed juxtaposition of the "Exorbit
a. Why is the capital utilisation rate procyclical? b. How is the natural rate of unemployment determined?
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