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A 5 percent increase in the price of digital apps reduces the amount of tablet devices demanded by 3 percent. What is the cross price elasticity of demand? Are tablet devices and digital apps complements or substitutes?
Most economists believe that real economic variables and nominal economic variables behave independently of each other in the long run. For example, an increase in the money supply, a-------------- variable, will cause the price level, a-----------..
Suppose you discover that average fixed costs are $2 and average variable costs are $7. Indicate what the firm should do.
Elucidate how would you improve this survey to better reflect the needs of the consumer.
A recent analysis by Bloomberg Magazine discusses what would happen if England would suddenly leave the European Union, in terms of “shocks” in Consumer expectations, Investment, Credit and Currency. Since this has never happened before, people are u..
Elvin, a manager at a breakfast cereal company, is faced with the problem of a reduction in sales. After a lot of analysis, Elvin has come up with two courses of actions. He is now contemplating whether to improve packaging or offer discounts to boos..
Describe how and open market purchase by the Fed will affect the money supply of $7 million will affect the money supply. Assuming a required reserve rate of 5%, what is the maximum amount by which the money supply can change due to open market opera..
Consider and economy with the following production technology: Y = 9K1/3 L2/3 , where the aggregate capital stock is K=100, and aggregate labor is L=100. The price of output is 1. a) Compute the equilibrium wage and capital return. b) Compute total p..
q.hiro nakamura is ceo of the cola king bottling company a small regional producer operating in the pacific northwest.
Suppose a comparable phone costs 500 USD in the U.S. and 300 EUR in Germany. If the nominal exchange rate is 0.8 EUR per 1 USD, then the real exchange rate in terms of how many German phones can be traded for one U.S. phone is
Even though some cities in Texas have the ability to design their own charters, most stick to 1 of the 4 primary types. What are the advantages and disadvantages of each?
Consider the taco stands on State Street. Suppose that the taco market on State Street is a perfect competitive market, where all taco stands are exactly the same (i.e. producing the exact same tacos and having the exact same cost features). The mark..
Suppose we allocate a budget for flu shots between physicians and licensed physician assistants. Let MBP equal the marginal benefit from physician administering flu shot and MCP equal the marginal cost of physician administering flu shot.
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