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The price elasticity of demand for health care is .2. This means that a 10 percent increase in price will produce a: A. 20 percent decrease in quantity demanded B. 10 percent decrease in quantity demanded C. 2 percent decrease in quantity demanded D. 2 percent increase in the quantity demanded
A competitive firm’s cost of production is C(Q) = Q^3-20Q^2+125Q. The firm’s problem is to choose the value of Q> or = 0 that maximizes its profit.
Jonathan consumes two goods, steak and instant ramen noodles. When Jonathan has less than $100, instant ramen noodles are a normal good. However, when Jonathan has more than $100, instant ramen noodles are an inferior good. Show the situation on a gr..
the probability of damage between $10,000 and $25,000 to be.12 If the company wants to make a profit of $200 above the expected cots, what should be the price of the policy?
Compute the revised slope of the AE cure and the multiplier when you know that the imports and the marginal tax rate
Amy the architect and Bill the builder both have the same preferences, given by: U = (C – 180) (L – 50) 2 If Amy works, she receives a wage w a = £10 per hour worked. Bill meanwhile is paid w b = £5 per hour worked. Now suppose the government wants t..
What is the Deadweight loss cause by the insurance policy? What happens to the size of teh deadweight loss if it turn out that the marginal external benefit of visiting the doctor is $50?
Agricultural price supports increase consumer surplus. Agricultural price supports decrease producer surplus. Agricultural price supports benefit taxpayers by reducing the price of food.
According to a Wall Street Journal article "MCI, in New Phone War Skirmish, Files Suit over AT&T Ad Claims," MCI was upset with AT&T over allegedly false claims that AT&T's service is cheaper than MCI's. Suppose that the typical consumer is a small b..
A perfectly competitive firm will shut down immediately when the market price falls below
A shortage of a good occurs when: Who ultimately pays the tax depends on who writes the check to the government. If a buyers pay $10 per unit and sellers receive $8.50 per unit the tax is 1.50 per unit
Conduct original research on an American Economic History event that occurred between 1900 - 1960. (you cannot do the Great Depression or Prohibition) . I chose The Great Mississippi Flood of 1927, but my professor said " Your topic on the Mississipp..
Please identify a particular industry (non-government) that meets the criteria for Pure Competition or Monopoly. Explain clearly why you think the industry is in Pure Competition or is a Monopoly and evaluate it from perspectives of efficiency and eq..
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