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Some argue that the price elasticity of demand can be used to determine whether a good or service is a luxury or a necessity. In medical care, a procedure with an elastic demand would be considered optional, or elective, and a procedure with an inelastic demand would be a medical necessity. Should planners use price elasticity of demand as a guide to defining services that are medically necessary? What are the advantages of such a classification scheme? What are the drawbacks?
Draw Bob's budget constraint (put skinny ties on the horizontal axis). Bob’s preferences lead him to choose a combination of 4 DVDs and 30 skinny ties. Draw the indifference curve that leads him to this choice. What is his marginal rate of substituti..
What is the leading cause of inflation in the US economy. Please give me the best answers tutors.
What are the components of aggregate expenditure. What determines the slope of the aggregate expenditure line.
Suppose that a monopoly bank faces an upward sloping supply curve of deposits R (D) = 1 + 0.02D, where D is the quantity of deposits and R (D) is the (gross) deposit rate. If one unit of deposits invested in loans yields a (gross) return of 10, what ..
Assume a local producer of beef cattle wishes to remain at the same level of output when the input cost of corn increases but the substitute input milo does not increase, what will the producer do to remain at the same level of output?
How does a government budget deficit affect the economy? Identify two periods in recent history in which the United States has run budget deficits. What were the reasons for the deficits during those time periods?
Suppose that you are trying to decide whether to spend 4,000 on stock issued by WildWeb or on a bond issued by the same company.There is a 50 percent chance that the value of the stock will rise to? 8,800 at the end of the year and a 50 percent chanc..
Given the importance of the M-Pesa to the rising economic growth of the Kenyan economy, why would Kenyan government take 10% tax off the employees pay check?
Should the seniority rule be eliminated, what is MOST likely to gain greater influence over the process of selecting committee chairs.
Will’s grade (G) for an upcoming exam depends on the number of hours he studies marginal analysis problems (A), and the number of hours he studies supply and demand problems (R). Specifically, his grade production function is G = 7A0.5R0.5. What is W..
Explain how would the competitive balance in the American and National Leagues change if baseball owners forced the Yankees to move to Albuquerque, New Mexico.
Suppose the US demand curve for gasoline shifts rightward, and the U.S. supply curve for gasoline remains unchanged. As a result, the price of gasoline increases by 9 percent, and the equilibrium quantity increases by 3 percent. Which of the followin..
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