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By comparing states that did and did not allow optometrists to advertise the price of eyeglasses, economist Kyle Bagwell found that
A. prices were higher in states where price advertising was allowed.
B. prices were lower in states where price advertising was allowed.
C. prices were no different in states that did and did not allow price advertising.
D. the advertising did not affect prices but did enhance consumer enjoyment of their glasses purchases.
Explain how the short-run Phillips curve, the long-run Phillips curve, the short-run aggregate supply curve, the long-run aggregate supply curve, and the natural rate hypothesis are all related.
the circular flow diagram is model of how the economy works. explain how the model would change if the following events
Where formal cartels are illegal, what techniques can firms use to attempt to prevent price wars from breaking out and to maintain a price level in the market, which approximates the level that a monopolist would charge?
Angus works as a dairy farmer and loves his work. Because the dairy business hasn\'t been doing well lately, Angus is considering changing careers. He could work as a technician at the local dairy plant, and earn $27,000 a year. Angus decides to make..
Sally Stanford is buying a car that costs $12,000. She will pay $2000 immediately and the remaining $10,000 in four annual end-of-year using constant principal payments. The annual interest is 15%. Prepare a cash flow table to represent this situatio..
Suppose that the president has decided to increase government spending by building more libraries. The legislation was rushed through Congress and enacted without any delay. From here, the libraries will take 10 months to plan and 2 years to build. W..
A Big Mac costs $5 in the U.S. and 7 euros in Germany. If the exchange rate is 0.6 Euros per dollar, is the dollar undervalued or overvalued against the Euro? What would you expect to happen in the currency market? What objection do you have to using..
Suppose a certain state increases the license fees that physicians must pay from $500 to $2000 per year. Trace out the impact of the increase in fees an average cost, average variable cost, fixed cost, and marginal cost for physicians operating in th..
Show the graphical implications of agricultural production increasing at a rate that is faster than population increases during the same time period. Explain the outcomes.
The recent immigration of labor into the United States from Mexico has led to increased calls for new restrictions on this movement of labor (including greater enforcement of existing restrictions). What would be the costs and benefits to the United ..
Explain why would elasticity of demand be important to you in determining the products on which the taxes should be leived.
Dave and Christy both follow the life-cycle hypothesis: they smooth consumption as much as possible. They each live for five periods, the last two of which are retirement. Here are their incomes earned during each period: Compute their wealth (that i..
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