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Suppose that you are an officer of your campus theatre club. You are at a meeting called to discuss ticket prices. One member says, "What I hate to see most of all is empt seats in the theatre. We sell out every weekend performance; however there are always empty seats on Wednesdays. If we cut our Wednesday night prices by enough to fill up the theater we'd bring in more money." Would this tactic really bring in more revenue? What would you require to know in order to be sure?
the government pays attention to elasticity of demand when it selects goods and services on which to levy excise taxes
A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm’s total costs are C (Q) = 60 + 14Q + 2Q2. What are the firm’s short-run profits? What price must the firm charge in the short run?
During the 70's and 80's the goverment of many countries in Europe and North America banned the advertisement of cigarettes on televisions. Suprisingly, this attracted little protest from the cigarette manufacturer's.
ppose that the reserve requirement is 10 percent and the balance sheet of the People's National Bank looks like the accompanying example. A. What are the required reserves of People's National Bank Does thebank have anyexcess reserves B. What is th..
assume that you are going to open up a lemonade stand. you have savings in cash of 100 to begin your venture. you
Suppose a special tax was introduced that used the value of one's automobile as the tax base. Each person would pay taxes equal to 10 percent of the value of his or her car. What distortions do you think would appear in the economy if such a tax w..
1. (a) Assume that the exchange rate between the U.S. dollar ($) and the Mexican peso (P) is pegged/fixed at ER=$1/P4. Assume that, initially, this exchange rate corresponds to equilibrium in the foreign exchange market. Illustrate the initi..
A. Assume that ? = 1. What is the real interest rate, equilibrium level of output, consumption, planned investment, and net exports? B. Suppose the Fed increases r' to r' = 2. Calculate what happens to the real interest rate, equilibrium level of ..
your economy is in full employment equilibrium. suddenly an improvement in technology moves the lras to the right. what
What are the mean earnings of males and females in this sample? Does the regression result support the claim in the news?
Why is the banking system in the United States referred to as a fractional reserve bank system? What is the role of deposit insurance in a fractional reserve system?
A corporation purchased a machine for $60,000 five years ago. It had an estimated life of 10 years and an estimated salvage value of $9,000. The current book value of this machine is $12,500. If the current market value is $30,000 and the effective i..
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