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Your income rises from $1,000 a year to $10,000 and your purchases of beer increase from 10 to 20. Assume a linear relationship between income and quantity demanded. What number below most closely approximates your income elasticity at income equals $4,500?
If the stock price rises, the price of a call option on the stock ________ and that of a put option _________ . (Why?)
For the period 1980-2010, how did the rate of growth of per capita GDP in China compare to that in the US? How did the rate of growth of technological improvement (broadly conceived) in the two countries compare? Give some examples of changes that ca..
q.given your answer in part b if px would increases by 10 by what percentage would sales decrease? what impact would
Explain how much tax revenue does this tax create. Illustrate what proportion of the tax is borne by consumers.
Which of the following is critical for a firm adopting a long-term cost-reduction strategy?
Recommend appropriate pricing and nonpricing strategies for your new or existing good or service based on the projected economy’s stage in the business cycle and the prevailing projected economic conditions for one or more macroeconomic factors. Expl..
In the movie Peter says: “It’s not that I am lazy. It is that I just don’t care…The problem is one of motivation.” What kind of problem is depicted in the movie? Is it one of moral hazard or adverse selection? Explain.
q.suppose that the inverse demand curve for paper is p 200 - q. the private marginal cost is mcp 80 q and the
Assume that output is 1.6% below potential and that the inflation rate is 3.5%. Assume that the Fed has specified the inflation coefficient is á = 0.5 and that the natural real rate of interest is 2%. At what level should the Fed set the federal fund..
Your company sells expensive, branded fountain pens. There are 100,000 people aware of your pens. Each of these 100,000 peoples has his or her own willingness to pay for your pens. This willingness to pay numbers are uniformly distributed between $0 ..
Discuss this week’s objectives with your team. Your discussion should include the topics you feel comfortable with, any topics you struggled with, and how the weekly topics relate to application in your field.
Explain how the economy can adjust in the long run to restore full-employment equilibrium. Draw a graph to illustrate this adjustment process.
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