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If the price elasticity of demand is –0.6 and the income elasticity is +0.25, then what is the effect of a simultaneous 10% increase in price and a 20% increase in income on total health expenditures (again just the direction, do not need to calculate the exact change in dollars)? Explain your answer. (Hint: What is the net effect of the increases in price and income on quantity demanded?)
Zigs Industries had the following operating results for 2011: sales = $29,820; cost of goods sold = $19,810; depreciation expense = $5,300; interest expense = $2,640; dividends paid = $1,500. At the beginning of the year, net fixed assets were $17,23..
Suppose that the legal reserve ratio set by the Fed is 10% and that the Fair Bank in Fairdealing, Missouri, initially exhibits checkable deposit accounts of $220 and a reserve account of $70. A customer of Fair Bank deposits $100 into her checking ac..
A statistics practitioner drew a random sample of 400 observations and found that x bar = 700 and s = 100. Illustrate what is total amount of output firm should produce.
Detail how family influences socialization. What cognitions, affects and behaviors are specific to families? Explain how socialization by family has impacted you as a consumer.
From the list below, select the components or inputs associated with the production function where GDP is the output. There is more than one possible answer. Capital deepening, population, physical capital, aggregate supply, aggregate demand.
Among his many endorsement contracts professional golfer Tiger Wood endorses Buick automobiles. Buick reportedly recently extended his contract for another 5 years at $40 million. If Buick makes $4,000 profit per car they must expect to sell at least..
What criteria would you apply to determine where such a policy is or is not successful. Judging from your own stated criteria, was Japan's exercise successful.
Last year, a manufacturer introduced a new product that was a huge success. So the company made the decision to invest an additional $2.8 million for a plastic injection molding machine (which could be sold for $2.0 million) and $150,000 in plastic i..
A retail outlet is being designed in a strip mall in Nebraska. For this outlet, the installed fiberglass insulation to protect against heat loss in the winter and heat gain in the summer will cost an estimated $90,000.
SaveUmoney Tax Services (STS) is a small operation that offers tax services to individuals and small businesses. A local marketing consultant has estimated the weekly demand for STS's services as follows: Q = 1200 - 6 P + 25 A where: Q = the number o..
Suppose the price of a can of Diet Pepsi is $1. Find out Sally's optimal consumption of Diet Coke as a function of the unit price of Diet Coke (PC).
Define the key aspects of “Western Civilization” and discuss the different ways historians might understand the term. How “west” is the West, for example? What are the most important changes, in your opinion, that Western Civilization brought to huma..
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