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Suppose the price of flour increases from $0.80 to $1.00 a pound and the quantity demanded deceases from 100 pounds to 95 pounds. Using the midpoint formula method, what is the price elasticity of demand for flour? Is the demand for flour elastic or inelastic?
In retrospect, it is clear that the U.S. economy was in a precarious position in 2006. Trillions of dollars had been borrowed to buy housing on the expectation that home prices would keep on rising. In 2006 the house prices fell; what happened in rel..
Would discovering a large oil reserve affect the AS curve for the long-run, short-run, or both? Explain.
Labor is expected to increase by 5% and the interest rate is 10%. What is the maximum amount you could spend on the device?
Draw and explain the shapes of indifference curves that reflect the following preferences.
Suppose that your production facility can only produce 1,000,000 pills per year. Illustrate what is your optimal price and quantity given the production constraint.
Draw a production possibilities curve for time. On one axis put sleep time and on the other put awake time. You have 24 hours available in a given day. Indicate the combination that describes your allocation today. Also indicate a combination that is..
If the federal government increases government purchases and lowers taxes at the same time, does the budget deficit increase or decrease? Discuss briefly with graphs
The country will be poorer than previously. According to the two definitions above, is it in a recession?
Suppose demand for a good is QD = 50 - P and supply is QS = -10 + P. How much is the producer surplus? How much is consumer surplus?
Suppose that the price didn't change. Elucidate amount of income that Ms Ramirez has to give up to have the same level of utility as if the price had changed.
What are common stereotypes of the specific minority groups explained in the training guide? How may one differentiate those stereotypes from accurate descriptions of the minority groups?
Janice really likes potatoes. At best any other goods are worth less than a dollar to her, potatoes cost $1.00 per pound, and she has $5.00 that she could possibly spend on potatoes or other items. Suppose she feels that the first pound of potatoes i..
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