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Gas stations off of I-25dramatically increased their prices during the solar eclipse in August of 2017,giving rise to complaints of "price gouging." Using the same critical thinking presented in Week 4 Recitation, what is "price gouging?" What are the supply and/or demand changes that caused this high pricefor gas during the eclipse? Why would the short-run price elasticity be lower than the long-run price elasticity of demand for gas in this case? Is price gouging fair?
Illustrate what is the unemployment rate. Karen sharpens knives in her spare time for extra income.
Suppose all workers value their leisure at at 90 goods per day. The production function relating output per day to the number of people working per day (L) is: Assume there are no taxes. What are the equilibrium values of the real wage, employment an..
The financing of a government deficit increases interest rates also, as a result, reduces investment expenditure.
With this data, calculate the Present Value of Larry's future bonus payments at 3% interest, assuming he will achieve his enrollment targets.
In the final round of a tv game show, contestants have a chance to increase their current winnings of $1 million to $2 million. if they are wrong, their prize money is decreased to $500,000. A contestant thinks his guess will be right 50% of the time..
In a competitive labor market, the equilibrium wage rate and the number of workers employed are determined by labor supply and labor demand. Firms maximize profit where the MRP = MRC and hence hire labor up to this point. What do you think could be t..
The political business cycle implies all of the following EXCEPT that:
When monetary policy reduces interest rates,
bavarian crystal works designs moreover manufactures lead crystal wine decanters for export to international
The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Based on t..
Steps that a government take to ensure that sustainable development is always considered in assessing which major economic projects or investment proposals to accept
How can it be said that the factor-content approach “reveals” a country’s factor abundance? What assumptions seem crucial for making this inference? Explain.
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