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1. What is the implication in pricing of a commodity of a good yielding a highly elastic "price elasticity of demand"?
2. Why are luxury goods highly elastic in terms of price elasticity of demand?
3. Name and explain a psychological factor affecting a consumer's choice of a commodity.
4. How may consumer behaviour be affected by their reference group? Explain.
A 10-year project is evaluated under two scenarios: (i) with inflation, and (ii) without inflation. Without inflation under 10% interest rate its present worth is $21,851. If annual inflation of 2% is assumed, then the project's present worth becomes..
Suppose you are considering switching fields from public health and find the following salary schedule:
What are the disciplinary procedures at the local union level that would most commonly be followed when a member has a breach of the standards of conduct in the union’s bylaws? What are six of these types of breaches?
Write down the profit maximization problem of the representative firm. What is the new short run equilibrium price and production.
Dumping and predatory pricing involve selling at very low prices, even below cost, for the purpose of driving competitors out of business. If a firm were to succeed it would be a monopoly and could raise prices accordingly. Why would a predatory mon..
Consider the following Prisoner’s Dilemma game with utilities (UJohn Wayne, UMontgomery Clift). Table 1: The Prisoner’s Dilemma Game. Find the Nash equilibrium if the game is played once.
Suppose the economy is at a short−run equilibrium GDP that lies above potential GDP. Which of the following will occur because of the automatic mechanism adjusting the economy back to potential? GDP?
Summarize how the WTO, World Bank and IMF can help achieve SD Goals.
Which of the following would cause the demand curve for rice to shift to the left?
A sum of money Q will be received 6 years from now. At 5% annual interest, the present worth of Q is $60. At the same interest rate, what would be the value of Q in 10 years?
Calculate the price elasticities of demand in each market and discuss these in relation to the prices to be charged in each market.
Explain how changes in monetary policies can affect one or both of these measurements (AD and AS).
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