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George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50 he sold only 4,000 T-shirts. What is the demand elasticity? If his marginal cost is $4 per shirt, what is his desired markup and what is his initial actual markup? Was raising the price profitable?
Explain about a model and use of it in economics. A model is a simplified demonstration of a real situation which is used to better understand real-life circumstances. The
how adverse selection has an impact on financial crisis
Explain the adjustment to the new equilibrium price from an increase in supply.
Why do financial crises occur and why are they so damaging to the economy?
Norms influence behavior conformity among group members. What factors will influence group members to conform to a group's norms, and when will members remain independent? Do indiv
whwt is the difference between the fixed accelerator and the flexible accelerator theories of investment?
1 ) GDP Consumption 240 244 250
Private sector in the circular flow The private sector total income is known as the national income. Because private sector receives the entire return from the factors of pr
The consumer's utility function is u(x1,x2) = (x1) (x2)^2 (a) Graph his budget constraint for p1 = 3, p2 = 2 and M = 900, and write down the equation for his budget line. (b)
illustrate the effects of a reeal wage existing in the labour market if it is perfectly competitive
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