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Table 1 shows the demand and supply schedules for running shoes. What is the market equilibrium? If the price is $70 a pair, describe the situation in the market. Explain how market equilibrium is restored. If a rise in income increases the demand for running shoes by 100 pairs a day at each price, explain how the market adjusts to its new equilibrium.
If the quantity of money rose 10%, velocity was unchanged, and output rose 6%, what would be the inflation rate, according to the equation of exchange? Equation given: (Quantity of Money) * (It's velocity) = (Price level) * (Output) or ((QM) * V ..
Suppose the union s objective is to maximize total labor income. What is the income-maximizing wage and quantity of labor demanded?
What is the alkali-aggregate reaction? List some of the rock types that are vulnerable to attack by alkaline solutions. Discuss the effect of aggregate size on the phenomenon.
Assume a firm is a monopsonist that can hire its first worker for $6 but must increase the wage rate by $3 to attract each successive worker (so that the second worker must be paid $9, the third $12, and so on). The marginal revenue product of lab..
If Jacob receives by consuming ice-cream cone (X) and hamburger (Y) at Burger King is represented by the utility function U(X;Y) = XY. In addition, the per-unit prices of ice-cream cone and hamburger are $1 and $3 respectively
The following hypotheses are given. H0 : 0.71 H1 : > 0.71 A sample of 100 observations revealed that p=0.85. At the 0.02 significance level, can the null hypothesis be rejected (a) State the decision rule. (Round your answer to 2 decimal places.)
Which assumptions are needed to make b an unbiased estimator for β - Explain how a confidence interval for β2 can be constructed. Which additional assumptions are needed?
Assume that securitization combined with borrowing and irrational exuberance in Hyperville have driven up the value of existing financial securities at a geometric rate, specifically from $2 to $4 to $8 to $16 to $32 to $64 over a six-year time pe..
Find Todd's optimal consumption bundle and utility level at that price level, using the Lagrangian multiplier method. Assume the government decides to impose a tax of $5 per unit of x (so that the new price of good x is $10).
Suppose that the government introduces a price support for mushrooms and sets the support price at $6 per pound. Who gains and who loses? What are the quantity of mushrooms produced, the surplus, and the deadweight loss?
What is the best estimate for Morningside's cost of equity?
Question: Examine the common price setting strategies of airlines that use game theory. Predict the potential effects of such pricing strategies on the demand for seats, and conclude the resulting impact on the profitability of the airlines.
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