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Is it true that the income elasticity of demand can never exceed, in absolute terms, two times the price elasticity of demand if the good in question is a superior good?
The conventional (classical) labor market theory suggests that i) the wage rate adjusts smoothly so that labor supply equals labor demand; ii) wages are set competitively across markets; iii) there is no ‘involuntary’ unemployment (anyone who wishes ..
Heidi spends all her income on going to movies, regardless of her income level or the price of movie passes. What is her income elasticity of demand for movie passes? What is her price elasticity of demand for movie passes?
XYZ has 5 million shares outstanding at a current market price of $65 per share. What is the maximum cash price per share that could be paid for XYZ?
Suppose price levels were rising each year, but money wages were "sticky downward" and never fell. How would real wages in this market adjust?
Market Value of a firm is defined as present value of expected future profits. In the late 1990s and early 2000s, companies like Amazon and EBay
What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time? (Include data)
An automobile is purchased in 2016 with $25,000, which is supposed to bring $5,000/year to buyer for the next 5 year. Salvage value of this product is $3,000 at the end of five years useful life. Why in case of BTCF: Market rate = (Inflation free ra..
Demand tends to be:
If the economy is experiencing a large recessionary gap, what dicretionary policy might the government use to get the economy out of the output gap?
How much interest will we pay at the end of a ten-year period if we are getting a loan of $15,000 at a simple interest rate of 8% per year. What is the total amount we will owe at the end of a five-year period? We deposited $1,000 at an interest rate..
Suppose that the opportunity-cost ratio for watches and cheese is 1C ? 1W in Switzerland but 1C ? 4W in Japan. At which of the following international exchange ratios (terms of trade) will Switzerland and Japan be willing to specialize and engage in ..
In a market with an inelastic (vertical) supply curve, what is the effect of a $1.00 per unit tax (paid by consumers)
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