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Identify one product for which consumers normally have elastic demand and one product for which consumers normally have inelastic demand. (Use examples that are not found in the textbook.) Do either of the products that you identified have any close substitutes? Explain your answer.
A. If Mercedes Benz realizes that its annual demand for 500SEL model is 50,000 and their cost of order preparations is $42,000.00 and the inventory carrying cost per car per year is $3,600.00. What will be the Economic Order Quantity? b. During reple..
What variable adjusts to make the quantity of money held equal to money supplied?
Explain as completely as you can what an economist means by demand (supply) and discuss (this implies that you are able to discuss why the factor causes the shift and explain the direction of the shift ...(this can be done in one sentence for each fa..
It is $16 trillion today. Does this mean that the average American is twice as well off today than in 1996? Why or why not?
Why does the concept of money neutrality imply that monetary policy to stimulate investment will be ineffective in the long run?
Write a 2-3 page paper addressing the following: 1. Describe the general characteristics of oligopolies. 2. Describe the economic characteristics unique to the airlines.
Define the concept of an externality. Why will unregulated market systems not allocate resources efficiently where externalities are present? Draw a diagram to illustrate the over allocation of resources to a market characterized by negative external..
A call option is currently selling for $5.4. It has a strike price of $80 and five months to maturity. What is the price of a put option with a $80 strike price and five months to maturity? The current stock price is $82.04, and the risk-free interes..
Swap arrangements among national central banks
Chloe loves fashion and her scarf and hat must always match. Therefore she views scarves and hats as one to one complements U = min {S,H}. Graph Chloe's indifference curves for scarves and hats.
You buy a bond for $1118 that pays $20 interest every 6 months. It will reach maturity in 9 years at which time it will return its face value of $1000 plus the final $20 interest payment. What is the pre-tax annual rate of return on this bond?
In a monopolistically competitive market, the government applies a specific tax of $1 per unit of output. What happens to the profit of a typical firm in this market? Does the number of firms in the market rise or fall? Why?
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