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Question: Clay is willing to pay up to $150 for a new coffee maker. After Clay purchases the coffee maker they receive a consumer surplus of $10. Given this information, what price did Clay pay for the coffee maker?
What is the relationship between price elasticity and position on the demand curve? For example, as you move up the demand curve
DrugCo is considering a further price increase to $12. Estimate the impact on the quantity sold. Do you expect revenue to increase or decrease?
Why would removing a trade restriction, such as a tariff lead to more rapid economic growth?
1. In the 1950s, facing massive unemployment in the cities (much of it disguised in the informal sector), the Kenyan government embarked on a "Keynesian" policy of creating new urban jobs through public investment.
Determine elasticity of demand for various quality ranges of the product based on textbook theory and judgments about the degree of luxury vs. necessity represented by various brands (e.g. a luxury car vs an economy car).
The current price charged by a local movie theater is $8 per ticket. At the current ticket price, the theater typically sells 300 tickets per showing. If the theater raises ticket prices to $9, the theater will sell 270 tickets. Assuming that the dem..
A man is planning to retire in 20 years. He can deposit money for his retirement at 6% compounded monthly. It is estimated that the future general inflation rate will be 4% compounded annually. What deposit must be made each month until the man retir..
What impact does consumer spending have on the aggregate economy? How is it similar or different from the impact that government spending have on the aggregate economy?
In a paragraph or less, provide a brief description of the industry that you have selected to include at least the following:
What would be the resulting effect on equilibrium price level - explain. What will be the effect of the different tools of fiscal policy to stabilize the economy?
What is a subgame-perfect Nash equilibrium proposal of player 1, and what is the resulting outcome of the game?
To reduce its exchange rate risk, TJ has the opportunity to purchase a forward contract from Chase Bank.
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