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Q. income elasticity of demand for your firm's product is estimated to be 0.75. A recent report in Wall Street Journal says that national income is expected to decline by 3 percent this year.
a. What should you do with your stock of inventories?
b. What do you expect to happen to your sales?
c. How would you answer parts a and b if you expected a 5 percent increase in income instead of a decrease?
Explain the difference between Macroeconomics and Microeconomics. Also explain how economics is used as a social science and as a policy tool.
Analyze the characteristics which make any transaction possible and justify the importance of each of the characteristics.
Suppose that there are two products: soda along with clothing. Both Brazil and the United States produce each product.
Discuss the probability that the annual net cash flows will be negative. Determine the probability that the annual net cash flows will be less than $20,000.
Great post, you gave us a lot of useful information but how do you think that net exports will affect each of the items listed.
The water is identical in the two sizes and John gets no utility from the containers themselves, only from the water.
If a competitive firm hires another full-time worker, total output increases from 100 units to 110 units per week. Suppose the market price of output is $25 per unit. Illustrate what is the maximum weekly wage at which the firm would hire that add..
What government policies are available to reduce domestic demand in the medium run. Identify which components of domestic demand each of these policies affect.
If Rob and Nate are the only people who purchase discs, graph the aggregate demand for discs and write down the equation for this aggregate demand function.
The legislature has stated that the $.03 tax will increase goverment revenue by $300,000 per month and raise the price of gasoline by $.03 per gallon. is this correct.
Elucidate the marginal revenue from the fourth worker
Illustrate why might Fourth of July fireworks be considered a public good. who should pay for them. what about airport security.
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