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Q. Calculate the income elasticity of demand for product X when I= $30. Explain how could we categorize product X? Do you reflect on commodity X a cyclical or non recurring good? Explain why. Do you consider product X a necessity or luxury good? Explain why. Suppose the economy is in a recession and per capita disposable income is expected to decrease by 5%, then what percentage effect on sales would you expect to take place?
At what price would demand be unit elastic, assuming all else equal. Justify your answer
Why as a result of rise in exchange rate, the amount of imports fall but not as much as it does when the supply is perfectly elastic.
By what percentage do the total assets decline by bank. By what percentage does the bank's capital decline. Illustrate which change is larger.
How should labour be allocated between x and y to satisfy the demands calculated in part.
Hiro Nakamura is CEO of the Cola King Bottling Company, a small regional producer operating in the Pacific Northwest. Nakamura is considering two alternative expansion proposals
By how much should domestic auto-makers increase the cost of automobiles if they wish to increase sales by 5 percent next year.
How much income gets you into the top quartile or quintile. Discuss the issues of regressive, proportional, and progressive taxation.
Suppose instead that use of the Sonoma county buy local currency is completely voluntary. Who is the most likely to use this currency.
How much of each good does Alice buy as well as how much does she work.
What is the equilibrium cost as well as equilibrium supply.
Discuss the capture of the regulatory agency and your prediction as to the capture of the replacement regulatory agency and the politicians in the future.
Determine the cost to the government of buying firms unsold units
Why might variations in the dollar's value in terms of other currencies cause the trade deficit to move independently from the changes in the government budget deficit.
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