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Question: Assume that popcorn and potato chips are substitutes, and popcorn and cola are complements.
a. How does a ceiling price (below equilibrium) on popcorn affect the price of cola? Explain.
b. Start the problem over and assume that there is an effective floor price (above equilibrium) on potato chips. What happens to the price of popcorn?
(1)Compute the optimal prices, and the Lerner index and inverseelasticity of demand for each good. (2)Now suppose the goods are produced by two firms that chooseprices simultaneously. Compute the Nash equilibrium and compare
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How do you set up this game theory matrix?
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Is there sufficient evidence to indicate dependence between reported frequency of church attendance and choice of presidential candidate in the 2004 presidential election? Test at the .05 level of significance. Place bounds on the attained signifi..
abc corp. owns a piece of land and building a few miles from its headquarters. the land originally cost abc 500000 to
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ECON4355 Project - In this course project you are required to replicate the results in McCarthy (1994) ("the paper" hereafter)
Identify at least four key points of a relevant economic article from either the Strayer Library or a newspaper. Analyze the dynamics of supply and demand to anticipate market equilibrium.
Wendy's serves its hamburgers "fresh off the grill" This ensures high quality but creates leftover burgers if the staff overestimates the demand.
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