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If the price of a hardback novel increases from $25 to $30 and quantity demanded falls from 60,000 to 30,000 in response, what is the coefficient of price elasticity of demand using the simplest definition of price elasticity? a. 0.25 b. 1 c. 1.25 d. 2.50 e. 3 9.
suppose that wal-world and tarbo are independently deciding whether to implement a new bar code technology. it is less
Discuss briefly what you think the way in which the HDI is constructed. (Briefly means no more than five lines of text. Excesses are severely penalised.)
Why does a tax on a product that has a negative externality help get the market closer to the social optimum?How does the tax change the behavior of the consumer or producer?
The maintenance for a bus, whose life is 10 years, is $1500 per year starting the fourth year, increasing by $200 for each successive year. The interest rate is 5% per year. What is the present worth of maintenance cost?
suppose that in a given period, 9% of the unemployed people will find jobs and 3% of employed people will lose their jobs. In the U.S, unemployment is at 8.1%, 1% of employed people will lose their job, and 19% of unemployed will find jobs.
Suppose Ke, the required rate of return, goes up to 12 percent; what will be the new value of Po?
How does the market adjust in the long run when firms are earning short-run economic profits? How does this affect the short-run supply curve?
How thw economy revoves from a recession and returns to its long-run equilibrium with out any policy intervention.
When the economy makes the transition from its short-run equilibrium to its long-run equilibrium, what will happen to the price level. How will this change in the price level affect the demand for money and the equilibrium interest rate.
Consider that an entrant's ability to enter a market is fought, with the possibility of withdrawing from the industry (at a loss of 1 for the entrant and a gain of 8 for the incumbent), or staying (at a loss of 5 for each player).
Discuss some of the damaging effects deflation has on an economy and what would be a monetary policy prescription to decrease or eliminate deflation?
Over the past fifteen years the Heritage Foundation and Wall Street Journal have joined forces to make an annual Index of Economic Freedom.
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