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Suppose the income elasticity of demand for visits is +1.4. A consumer was spending $157 on visits and her income doubles. She will now spend $____.
If the coinsurance rate increases from 0.09 to 0.12, this raises the effective money price by ____ percent.
Let R be the expected return on a risky investment and R_f be the return on a risk-free investment. The fundamental idea of modem finance is that an investor needs a financial incentive to take a risk. For each company listed below, use the estimated..
Illustrate what is an opportunity cost. Elucidate how does the idea relate to the definition of economics.
Calculate Marginal Revenue from demand if the marginal propensity to save is 0.05, how large is the multiplier.
If the intended aim of the price ceiling set in the graph shown was a net increase in the well being of consumers, then positive analysis would conclude:
Each employer faces competitive weekly wages of $2,000 for blacks and $2,700 for whites. Suppose employers undervalue the efforts/skills of blacks in the production process. In particular, every firm is associated with a discrimination coefficient d,..
Suppose the Demand Curve is given by Q = 100 - .5 P Derive the Price that Maximizes Total Profit if the company produced at a constant marginal cost of $50/unit.
Explain why cooperative approaches may stand up to legal review more easily in unionized plants than in non-unionized environments.
q1. suppose that the government cuts taxes in response to a recessionary gap but because of legislative delays the tax
Suppose Mary’s utility function for two goods X and Y is given by: U(X,Y) = 2X1/2Y1/2. Suppose consumption bundle A consists of 10 units of X and 10 units of Y, and consumption bundle B consists of 20 units of X and 5 units of Y. Consumption bundle A..
A monopolist with a straight-line demand curve finds that it can sell one unit at $9 each or nine units at $1 each. Its marginal cost is constant at $2 per unit.
Tried and True’s accountant (from Problem 1-1) suggests that monthly rent and hourly wage rate also be factored into the productivity calculations. Annandale pays the highest average wage at $6.75 an hour. Tried and True is not sure it can keep all f..
In 2016, a nation's population was 10 million. Its nominal GDP was $40 billion, and its price index was 100. In 2017, its population had increased to 12 million, its nominal GDP had risen to $57.6 billion, and its price index had increased to 120. Wh..
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