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Suppose the price of the good is initially $100. What is the price elasticity of demand at this point? (Hint: What happens to the quantity demanded when the price drops by 10%?)
Suppose an individual's marginal rate of substitution is three slices of pizza for one beer at the present bundle of beer and pizza she is consuming. If the price of beer is $1.00 and the price of a s
Brad can fix the same kind of meal in 2hours, and his opportunity cost of one hour is $20. Will both Angelina and Brad be better off if Brad fixes meals for her and she pays him $45 per meal? Explain
If the input costs are rising at teh same time that consumer income is falling, what will happen to the equilibrium price and quantity?
Margaret has a project with a 28000 first cost that returns 5000 per year over its 10 year life. it has a salvage value of 3000 at the end of 10 years. if the marr i 15%, what is the annual worth of t
The federal budget: economy What is the impact of "G" policy ?
Gene Milton borrowed today a sum of $5,000 from his uncle Ben and at the end of year three paid a sum of $5,000 and paid another $1,000 at the end of year four to pay off the loan.
If the gross national debt initially is equal to $2.5 trillion and the federal government runs a deficit of $100 billion.
In today's market, Ford and Chevrolet produce small cars that are designed to compete with Korean made small cars. The American cars are slightly larger and slightly more expensive.
A company operates plants in both the unites states(where capital is relatively cheap and labor relatively expensive) and mexico(where labor is relatively cheap and capital is relatively expensive).
Name four reasons why the desired investment function would change the way it did.
For what values of λ and y will signaling occur (a separating equilibrium)? For what values of λ and y will signaling not occur (a pooling equilibrium)? Briefly explain.
How gold prices have spiked partially due to the fact that the Federal Reserve would consider buying more Treasury Bonds to fuel the economy. How would this affect the price of gold?
Suppose that the State Bank announces an increase in the money supply. As a result, people start to expect higher prices. What will happen to the short-run aggregate supply curve?
Distinguish between the Federal funds rate and the prime interest rate. Why is one higher than the other? Why do changes in the two rates closely track one another?
What are the positive consequences of preventing the offshoring of U.S service sector jobs,what are the negative consequences? Do these consequences change with the passege of time?
Due to the presence of dimishing returns to capital, doubling the amount of physical capital available for one worker to use will:
At what point will a firm shut-down? Support your answer with a graph. Explain, why will the firm continue to operate even when its profits are negative?
In benchmarking sales representatives against one another, what problems arise from continuing to reassign the above-average trade representatives to previously unproductive sales territories?
If Apple iPod only played iTunes, and iTunes only could be heard on the Apple iPod, could Apple price the technologically integrated bundle any way they wanted? If other electronic music can play on a
How can you justify the existence of government-granted monopolies for public utilities such as natural gas distribution and electricity in the light of traditional economic argument that the more com
Assume that American rice sells for $100 per bushel Japanese rice sells for 1600 yen per bushel and the nominal exhange rate is 80 yen per dollar
It is often suggested that the Federal Reserve try to achieve zero inflation. If we assume that velocity is constant does this zero-inflation goal require that the rate of money growyh equal zero? If
Explain one harm associated with unexpected inflation that is not associated with expected inflation. Then explain one harm associated with both expected and unexpected inflation.
What is the difference between a cost-benefit analysis and a cost-effectiveness analysis? Give an example of a situation in which a cost-benefit analysis would be appropriate and an example of a situa