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A study estimates that the price elasticity of demand for drug E is -3.41, but the price elasticity of demand for its class of drugs as a whole is -0.22.
a) Why is demand for drug E more elastic than for the whole class of drugs?
b) What would happen to revenues if the makers of drug E raised prices by 10%?
c) What would happen to industry revenues if all manufacturers raised prices by 10%?
d) Why are the answers so different?
Calculate the firm's ratio of long-term debt to long-term debt plus equity.
What is the Standard Deviation of the sampling distribution?
Think about the pricing methods--markup pricing, target-return pricing, perceived-value pricing, value pricing, going-rate pricing, and auction-type pricing. As a consumer, which do you prefer to deal with? Why? If the average price were to stay the ..
Suppose your Zimbabwean bank account pays interest monthly with the interest rate quoted as an effective annual rate (EAR) of 50%. (a) What percent interest will you earn each month? (b) Suppose the weekly inflation rate in Zimbabwe is 1%. What is th..
Elasticity question Please show work very elementary I'm having a hard time understanding.
A water utility for a growing city is considering expanding their capacity by investing in a larger system of wells. Their long-run marginal cost of water provision is characterized by the function MC(q) = 5 + 2 3 q (q is in thousands of gallons). De..
Be sure to clearly indicate what happens in the market for loanable funds, to net capital outflow, and in the market for currency exchange.
You are given the sample mean and the population standard deviation. Use this information to construct the 90% and 95% confidence intervals for the population
If the working age population is 366,547, what is the labour force participation rate?
Over the next twenty years, the average overall rate of inflation in Mexico is expected to be 8% per year, while in the United States the overall rate of inflation is expected to average 2% percent per year. Then what would you expect the average ann..
In reviewing the New Testament Acts and Epistles, what are the ways the Early Church practiced the elements of community? (Include references.)
A host of best-selling books advance the thesis that increases in conglomerate mergers and concentration of U.S. industry are responsible for "obscene profits."
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