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Q1. Which of the following is true? The price elasticity of demand for Royal Crown Cola is equal to the price elasticity of demand for soft drinks in general It is invalid to make inter product elasticity comparison.
Q2. Suppose the nominal interest rate in North Pogo (in) is higher than the nominal interest rate in South Pogo (is) by 4%. What would the Fisher effect imply about the expected difference in inflation rates between North Pogo and South Pogo, where we denote the expected inflation rates in North and South Pogo as In and Is respectively. What would you expect to be the effect on the exchange rate between and ¥ and $?
Why do celebrity icons receive such widespread attention and adulation
Describe a skimming price and a penetration price, and advise them whether they should charge a skimming price or a penetration price, with supportive reasoning for and against each pricing alternative.
Distinguish between the resources market and the product market in the circular flow model.
Budget line showing the various combinations of scores on the two exams that she can achieve with a total of 400 minutes of studying.
there is an incumbent monopoly in a market. A potential entrant may enter. Draw the game tree describing the situation?
Find the equilibrium values of the real interest rate, consumption, investment, and the price level.
Draw the production possibility curve and a. Define consumer surplus and producer surplus.
What is the social optimum quantity and price. Calculate the total surplus in the market equilibrium, at the social optimum and with the tax.
Determine the cost to the government of buying firms unsold units
What are the annual accounting costs for the firm described above? What are the annual explicit costs for the firm described above?
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.
Given the demand and cost conditions, what price, output and profits result in the short run? What will happen as the firm moves from the short to the long run
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