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Last week, Michelle spent $30 on caviar. Today, Michelle still spends $30 on caviar even though its price has doubled. What is Michelle's price elasticity of demand for caviar? (Use the midpoint formula for your calculation.)
Which of the following is not a motive for holding money in? Keynes's liquidity preference? theory?
q1. explain how it is possible for one of two people in a two-good economy to have an absolute advantage in producing
Explain game theory and how you can apply the concepts in your life and work now and in the future? How does game theory relate to competitive advantage?
Consider an initial stock of 5000 tons of high grade ore. The demand function for this ore is P = 2400 – 0.2Q (Q is measured in tons/year), and the cost of extraction is constant at c = $200/ton. The discount rate is r = 0.10. Recalculate Q0, Q1, p0,..
How did Maynard Keynes propose to address the Great Depression? Did it differ from the Classical views? How does it compare to Monetarism?
Elucidate what will happen to equilibrium cost and quantity of satellite TV service if wages of workers who provide satellite TV service increase while at same time cost of cable television service.
Laura (of Luke and Laura’s Itty-Bitty Drink Umbrella Inc.) is trying to decide how many workers to hire. The Itty-Bitty Drink Umbrella production function is given by: Q = 6L^(1/3)K^(1/2). The price of output is p, the wage rate is w, and the rental ..
A county is considering using a piece of park land for one of two alternative recreation projects. Project S would require construction costs of $2 million (year 0) and generate net benefits of $1 million per year for 10 years.
The expenditure approach (the sum of all spendings) to measuring the value of the nation's output (GDP) is equivalent to the income approach (the sum of all payments to factors). Discuss and illustrate with examples(s) where necessary. Real GDP is th..
Firms A and B are the only firms in the market for widgets. Each firm can choose between cooperating and fighting. If both firms choose to cooperate, each gets a profit of 10. If both firms choose to fight, each gets a profit of 5. Suppose firms choo..
what is the value of the money multiplier given each of the following sets of values for CUR and RES? what would be the equilibrium value of total money stock assuming a monetary base of $10 trillion?
Suppose the government increases both taxes and government purchases by $10,000. Assuming that the marginal propensity to consume is 0.75, calculate the change in private saving, government saving, and total saving. Then draw a graph of the loan able..
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