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Assume that the income of consumers changes by 10%, and as a result the quantity demanded for Good A changes by 8%. What is the income elasticity of demand for Good A? What does this mean for your company? Assume that the price of competing Good B decreases by 5% and as a result, the quantity demand for Good A decreases by 8%. What is the cross-price elasticity for your product? What type of goods are Good A and Good B?
Suppose that consumers decide to consume less (and therefore to save more) for any given amount of disposable income. Specifically, assume that consumer confidence (c0) falls. What will happen to output.
Which of the following possibilities is consistent with the property of diminishing marginal product.
When we apply 50 tons of fertilizer, the total yield is 1500 bushels. Elucidate the marginal value product per ton of fertilizer.
Pick an industry (personal computers, autos, etc.) and elucidate how it would function under market conditions of perfect competition, monopolistic competition, monopoly, and oligopoly. Of these, describe why you think one benefits consumers more ..
What is approximately maximum amount rm is willing to pay to be allowed to use e more units of input x, for e small.
Explain which technology would you advise the CEO of Defendo to adopt given the threat of possible entry. Also what will be the Defendo's profit given his choice.
Under very high rates of inflation, why would people prefer to use a barter system to buy goods, rather than use paper money.
If LFC sells chicken and biscuits as a meal deal, what price would be set for the meal deal which comprising both an order of chicken and an order of biscuits
a profit - maximizing industry in a competitive market is currently producing 100 units of output. Illustrate what is average variable cost.
It has been proposed that a government agency be charged with the responsibility for determining the amount of pollution
Illustrate what is area of employment why has this shift occurred in illustrate what direction would shift in labour supply and demand go. Illustrate what would be its effect on equilibrium of labour market.
Explain how does monetary policy work to close an inflationary and recessionary gap using the keynesians model and what is the link.
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