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Your marketing department just undertook a major advertising campaign promoting the quality of your Best Brand Bike Shorts-BBB Shorts. They have provided you with an estimate of the success of the campaign stating that: "the price elasticity of demand has decreased from -5.76 to -3.76." Before the campaign your price was $240 per pair of BBB Shorts. What should be the new price?
What is the relationship among AD, SRAS, and LRAS, as explained in the text, when the economy is into Long Run equilibrium? Explain. Why and how might a Supply Shock (OPEC oil embargo) lead the US into Stagflation? Why are Long-Run effects of an incr..
Suppose you plan to go to school this summer. The cost of tuition and textbooks is $1,400 and housing, board, and entertainment will cost you $500. If you didn't go to school, you'd live in your parents' house for free, but your other living expenses..
Consumption per worker is 72, depreciation is 12.5%, and capital per worker is 64. Given the production function y = 20 , show that this economy is in a steady state.
If a central bank adopts a policy of fixing an interest rate at a constant value and the economy enters a recession, what would happen to money supply and demand? Explain with a graph. Is this policy pro-cyclical or anti-cyclical?
The inverse demand for a homogeneous-product Stackelberg duopoly is P = 18,000 -4Q. The cost structures for the leader and the follower, respectively, are CL(QL) = 4,000QL and CF (QF) = 6,000QF..
q. select two of the following topics to discuss within the discussion thread1. converse how average cost narrates to
Similarities between Intellectual Property Rights and Public Goods. Differences between Traditional Procurement Contracts and Public-Private Partnerships.
A city near chicago sold $9000000 in bonds to pay for improvements to an airport. It set up a sinking fund with end-of-quarters payments in an account earning 8% compounded quarterly. Find the amount that should be deposited in this fund each quarter..
Assume an endogenous growth model with labour augmenting technology.
Does demand curves slope downward? How do wages affect labor supply?
If the on-campus demand for soda is as follows: Price (per can) $0.30 0.55 0.80 1.05 1.30 1.55 1.80 2.05 Quantity demanded (per day) 100 90 80 70 60 50 40 30 And the marginal cost of supplying a soda is 45 cents, what price will students end up payin..
Explain why the price of gas has changed. Identify some of the market factors that led to the price increase. Consider the determinants(supply or demand) that affect it. What is the impact on the market equilibrium as a result (due to a shift)? Give ..
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