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The graph shown above illustrates the demand curves for two goods: Sun hats and beach balls. Which demand curve is relatively more elastic?
Suppose that the markup of prices over costs increases to 10%. What happens to the natural rate of unemployment? Explain the logic behind your answer.
Consider now that there are two qualities s1 and s2 with s2 > s1 provided by two different firms 1 and 2. The timing is the following: first firms choose their qualities, second they compete in price.
Tax evasion is sometimes described as ‘‘contagious,'' meaning that an increase in evasion encourages yet further evasion. In such circumstances, is the only equilibrium to have everyone evading?
How would you compare the issues in this simulation to the domestic legal issues discussed in your Week One readings? How should companies resolve domestic and international issues differently?
If the interest rate is 30% which profession should he choose?
Find the expected value of X in Exercise R.1.
A medical clinic is being ran. Q=KL is the production function. Q is the number of patients treated. K & L are inputs. K = number of nurses, L = number of doctors. Price of K = 1 and the price of L = 5
a. find the optimal quantity and the price for the firm. b. Now suppose that demand changes to P = 110 - 3Q. Find the new optimal price and quantity. Has there been an increase or decrease in demand. Explain.
The alternatives are, Alternatives Cash flow A B C Installed cost $12,250 $14,000 $16,500 Uniform annual Benefit $ 2,750 $ 2,700 $ 2,950 Salvage value $ 1,500 $ 2,500 $ 5,500 Useful life in Years 8 12 12 Due to the unknown rate of technology trans..
Stock prices subsequently decreased. Discuss how this might have affected consumption.
Provide an estimate of the cross-price elasticity of demand for gasoline, both with respect to new cars and with respect to used cars. Are these estimates statistically significant? Do they align with economic theory? Give an interpretation of y..
A six-sided die is loaded in a way that each even face is twice as likely as each odd face. All even faces are equally likely, as are all odd faces. Construct a probabilistic model for a single roll of this die and find the probability that the ou..
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