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The Subway fare in your town has just been increased from a current level of .50 cents to a 1.00 per ride. As a result, the transit authority notes a decline in ridership of 30%. a. Compute the price elasticity of demand for subway rides. b. If the transit authority reduces the fare to back to .50 cents, what impact would you expect on the ridership? Why?
The Hair Stylist, limited, has a monopoly in College Park market because of restrictive licensing requirements, and not because of superior operating efficiency.
Empirical studies reveal a positive correlation among ethical conduct in a corporation and job satisfaction.
Two identical firms face linear demand. Market demand is given by P=30-Q.Solve for Stakelberg equilibrium prices and outputs.
Describe significant current trends related to IT in a business setting and your personal life. What are the pros and cons to the increasing use of technology to disseminate information.
Draw a diagram showing the current situation of the firm. In addition to the above information, suppose the price of the output is $13/unit, if the firm wants to maximize its profit, what should it do? Explain in detail with the aid of a diagram.
NJ taxes wine sales. While the retailers pay the taxes on wine sales, they may passon some or all of these taxes to consumers by raising prices. Identify the specific tax (tax per bottle sold) for which NJ's equilibirum market price and quantity e..
Money must have material backing to have value. Justify your response. Take a stand on whether or not it would be easier for the Federal Reserve to expand the supply of money in a period of prosperity versus in a period of recession.
Which of the following statements concerning the marginal-physical-product curve above is true? It can be determined from the marginal-physical-product curve shown above that A)marginal physical product reaches a minimum with the first worker.
An example of a fiscal policy Lowering the interest rate on loans to corporations, Increasing taxes to pay for greater military spending,are they true or fslse.
Determine the basic assumption about the velocity of money transforms the equation of exchange into the quantity theory of money?
Mitchell Electronics produces a home video game that has become very popular with children. If the threat is not credible, what changes in the game would be necessary to make the threat credible.
Economists often view life cycle variation in income as one form of transitory variation in income around people's lifetime or permanent, income.
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