Firm will ceteris paribus

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Reference no: EM135660

Q. If the price elasticity of demand is 1.5 and a firm raises its price by 20 percent the quantity sold by the firm will ceteris paribus

1. What will the multiplier be When the MPS is 0, .4, .6, and 1?

2. What will it be when the MPC is 1, .90, .67, .50 and 0?

3. How much of a change in GDP will result it firm increase their level of investment By $8 billion and the MPC is .80?

Reference no: EM135660

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