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If a car dealership increases the price of a Toyota truck from $18,500 to $19,500 and, as a result, sales of such cars decrease from 20 units to 12 units per month, what is the price elasticity of demand for this car in this market? Given your answer, explain why it would be wise or unwise to increase the price.
A recent graduate has submitted his application to the World Bank for a position in the Young Professional Program. He knows the Bank hires 4% of its applicants
Calculate the equity of the Gravel Construction Company if it has $1 million worth of assets? Gravel has $127,000 in current liabilities and $210,000.
What is the Consumer Price Index and How has the CPI behaved since the year 2000? What have been the causes of these changes? In your response, include a graph of the CPI for this period and cite your source.
What does the existing literature shows about relations between Fdi inflows &income, between FDI inflows and corruption and between Fdi inflows and pollution?
What are the marginal rates of substitution for each person and what is the formula for the contract curve and draw an Edgeworth box, labeling carefully, and indicate the contract curve.
Suppose this monopolist has constant marginal cost of $20 and zero fixed cost. Calculate consumer surplus, producer surplus, and total welfare in this market.
Define economic profit. Explain how economic profit is different than accounting profit. Why is it important for economists to measure economic profit rather.
Even though we distinguish between continuous and discrete uncertain quantities, in reality everything is discrete if only because of limitations inherent.
What is equilibrium market price (P) and quantity (Q)? Also, find consumer, producer, and economic surplus; using those initial market equilibrium points
Consider the use of commitment devices for individuals who decide to diet (for weight loss, general health, or other reasons). Discuss the different types.
Assume real GDP is $9,000 billion, and disposable income is $6,000 billion. The government cuts personal income taxes by 1% of DI (i.e., $60 billion).
A firm's marginal cost curve above the average variable cost curve is equal to the firm's individual supply curve.
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