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"When the British government tripled university fees for foreign students in Great Britain, about one-half of them left to study in other countries."
What is the implied price elasticity of demand by foreigners for a British education is (in absolute value). Explain. What do you think happened to university revenues from foreign students in Great Britain? Explain.
What do the unusually large maturity yield differentials noted above suggest about investor expectations of future short term interest rates?
the comparison of the percentage of change in the one variable divided by the percentage change in the other variable. An analytical technique utilized to show best case scenarios of demand and supply curves.
Assume the price of product B, increases from $1 to $1.50. As a result, the quantity demanded of product "A increases from 500 to 600 a month. This indicates that the cross-price elasticity and relationship between the two products.
What is the arc elasticity of demand for the London Times and what happened to income as a result of the decline in the price?
A producer produces good y using inputs x1 and x2 according to the production function y = x1^(alpha)x2^(beta) where alpha + beta
You are the manager of a local sporting goods store. Given the reservation prices, determine your optimal bundle pricing strategy.
Households make four kinds of economic decisions. Assume you have two households with the same income. Household A has one income earner and Household B has two income earners.
Assume the Sri Lanka government awarded contracts to private companies to rebuild the countryâ.
Explain how do you calculate the free market wage rate given the labor supply and demand functions.
Elucidate impact will an unanticipated increase in the money supply have on the real interest rate, real output, and employment in the short run.
Do not post on website: The principal-agent problem occurs if the manager (CEO) is not present to monitor the worker (manager). How can she get the worker (manager) to do what is in her best interest?
A bank loan has a quoted annual rate of 6%. However, the borrower must maintain a balance of 25% of the amount of loan, and the balance does not earn any interest.
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