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Supposed you own a barbershop/saloon. You are considering lowering the price of either haircuts or alcoholic drinks. The actual elasticity of demand for haircuts o 1.36 and for alcoholic drinks is 0.62. which price should you lowers? Explain
q1. explain how does a country become an importer of a good? an exporter of a good? illustrate what is a tariff?
Assume the market for heating energy. This year it is forecasted to be an unusually cold winter. Explain what will happen to the market for heating energy. Identify the effect on equilibrium quantity and price. What happens to the number of firms in ..
There has been extensive discussion of the "wealth effect." The argument goes that inflated stock values were partially responsible for the strong U.S. economy of the 1990's. Explain this linkage in words and then illustrate with an Aggregate Dema..
How does policy development affect the rights of the individual? What is the overall effect? Why should we be concerned?
Hospitals are facing unprecedented financial challenges from entrepreneurial physician initiatives that are establishing competitive, freestanding diagnostic and treatment centers, and specialty hospitals. In your opinion, what are the advantages and..
Consider a country that produces shirts and autos. Shirts are produced with sewing machines (specific factor) and labor while autos are produced using robots (specific factor) and labor. Show how going to international trade affects the budget constr..
The "law of one price" applies to all goods, except those that:
The chapter argues that investment depends negatively on the interest rate because an increase in the cost of borrowing discourages investment. However, firms often finance their investment projects using their own funds. If a firm is considering its..
As the economy expands and approaches the peak of a business cycle, which of the following tends to happen automatically, without a specific change in policy?
What causes fluctuations in the consumer price index? What caused the fluctuations in the consumer price index from 2012 to 2015?
q.consider the following islm model for a closed economyc4000.4yd i2000.3y-2000i g360t400 mp4y-100000ims2600 10
A It reinstated the monarchy, gave renewed powers to the Catholic church, and suppressed all political dissent B It made Napoleon emperor of France with near absolute power to govern;
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