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Two drivers—Walt and Jessie—each drive up to a gas station. Before looking at the price, each places an order. Walt says, “I’d like 10 gallons of gas.” Jessie says, “I’d like $10 worth of gas.” What is each driver’s price elasticity of demand?
Emilie loves profiteroles. She makes a profiterole by combining one unit of chocolate sauce (say 8 fl oz) and two puffs (stuffed with paste). She receives one unit of utility per profiterole. Bertrand just likes to eat. He receives one unit of utilit..
If demand shifts left and supply shifts right, then we know that. A demand curve for beans will shift right if. Demand will be more elastic if
Discuss an activity or process or product of Wal-Mart that exhibits economies or diseconomies of scale. Describe the source of the scale economy.
Describe the options at the disposal of the government to finance a fiscal deficit. What are the relative advantages and disadvantages of each option?
Explain how the U.S. economy may self-correct back to the long-run equilibrium where actual GDP equals to full GDP and there is full employment.
Define gross domestic product, explain the difference between real and nominal GDP, and explain how you would determine them. Show the difference with an AD/AS curve diagram.
q1. investment account holders iah depositors take the same risk that is assumed be bank shareholders. yet they have no
The recent immigration of labor into the United States from Mexico has led to increased calls for new restrictions on this movement of labor (including greater enforcement of existing restrictions). What would be the costs and benefits to the United ..
Adverse selection can occur when: a. one party has information not available to the other party. b. incentives result in one party not reaching an agreement with the other party. c. all parties have full information. d. information is not full but bo..
You have just spent several hundred thousand dollars on a research assignment, researching a project that your president wanted completed to support a major new initiative. The research results significantly contradict the intentions of the president..
You plan to purchase a car for $28,000. Its market value will decrease by 20% per year. You have determined that the IRS-allowed mileage reimbursement rate for business travel is about right for fuel and maintenance at $0.485 per mile in the first ye..
An environmental testing company needs to purchase $40,000 worth of equipment 2 years from now. At an interest rate of 20% per year compounded quarterly, the present worth of the equipment is closest to:
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