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Sylvia's annual salary increases from $100,500 to $109,500, and she decides to increase the number of vacations she takes per year from 3 to 4. Calculate her income elasticity of demand for vacations.
Normal or Inferior good?
Elastic or Inelastic?
What are your predictions for the US economy over the next two years? Use the macroeconomic models you have learned to present a reasoned answer. Explain your assumptions clearly.
In October 2011, Apple introduced the iPhone 4S, which had new features, including camera and voice control, but sold at the same price as the previous iPhone model. How did the introduction of the iPhone 4S affect the Consumer Price Index? What fact..
If the foreign country enters the market first, determine the equilibrium price and quantity. Will both countries produce. Show both average cost curves and the equilibrium.
Suppose that you were an industry analyst trying to determine if the leading firms in the automobile manufacturing industry are playing a tit-for-tat pricing game. What real world data would you want to examine? What would you consider to be evidence..
Explain how each change mentioned in the article impacts upon the aggregate expenditure model.
Would you suggest that the Brown Shoe Company cut its costs in order to increase its revenue.
A price-taking ?rm selling in a market with a price greater than the ?rm's average total cost should:
For each of the following calculate each of the multipliers and determine how a 100 billion dollar increase in government spending would affect total spending in the economy: Determine the spending, tax, and balanced budget policy multiplier. Identif..
Suppose several additional junior staff are employed in subsequent years after a new business is established. The owner notices a large increase in the motor vehicle expense account.
The industry demand curve for a particular market is: Q = 1800 - 200P. The industry exhibits constant long run average cost at all levels of output, regardless of the market structure. Long run average cost is a constant $1.50 per unit of output. Cal..
A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor at $7 each or to produce them in-house. Determine the range of annual volume for which each of the alter..
The International Parcel Service has installed a new radio frequency identification system to help reduce the number of packages that are incorrectly delivered. The capital investment in the system is $64,000, and the projected annual savings are tab..
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