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Suppose the price of the good, P, goes to $2.00. Now what is the price elasticity of demand? What is the cross-price elasticity of demand?
He has 12 hours per day available for either activity. Describe his production possibilities. In this one person economy could this also be his budget line?
She consumes 10 units of x1 and 15 units of x2. If her income doubles, while prices stay constant, how many units of x1 will she consume after the change in income?
Using the theory of consumer behavior, how do you think flexible benefit packages would affect an employee's preference between higher wages and more benefits?
What is the difference between "equality of opportunity" and "equality of outcomes." How could one or the other be supported by government policy?
The other newspaper, so the gains to reaching agreement are only $9? Suppose the two newspapers merge. What is the likely post-merger bargaining outcome?
The average price of red snubble is about $8 per kilo, and the fisher people's revenues for catching red snubble just cover their costs. What is the open access amount of fishing effort supplied?
If the state sells the bonds at auction, and receives 64 cents (now) for every dollar it will have to repay in ten years, then what's the implied yield (annualized interest rate)?
Assume that both X and Y are normal goods and that the price of good Y increases. Then, which of the following effect is known with certainty.
Explain how the solow growth model differs from models of endogenous growth with respect to the sources of technological progress and returns to capital
Assuming that two firms are competing in a Cournot Duopoly, when firm B adopts a strategy that raises firm A's Marginal Cost, what will occur?
At prices below 40, he will produce nothing. If the price of chairs is $100, Karl will produce 30 chairs. At this price, how much is his producer's surplus? 12(60 × 30) = 900.
An economy is facing a recessionary gap. To eliminate the gap, should the central bank use expansionary or contractionary monetary policy? How will the interest rate, investment spending, consumer
Construct a sequential decision tree for this decision situation and determine whether the company should make a bid.
The Wall Street Journal's experience after it increased its price to 75 cents. What implicit assumptions are the publisher and the analyst making about price elasticity?
The last bottle of wine added 50 units to Bridget's utility, while the last pound of cheese added 40 units. Is Bridget making the utility-maximizing choice? Why or why not?
where Q is output per week measured in tons and L is the number of workers employed. The weekly wage is $324 and the product sells for $3.24 per ton. Calculate the firm's point elasticity of demand
The marginal cost curves of the small producers are, respectively: What is the aggregate supply curve for the small producers? What will be the quantity supplied by each of the two small producers?
How much should the price leader produce in order to maximize profits? What price and quantity will now prevail in the market?
The U.S. cigarette industry has negotiated with Congress and government agencies to settle liability claims against it. Under the proposed settlement, cigarette companies will make fixed annual paym
Desired investment of Id=30-200rw. Calculate national saving, investment, and the current account balance in equilibrium when the real world interest rate is?
What characteristics or issues would be pertinent or applicable for implementing this system? Be sure to discuss political, socio-economic, language, currency.
Expectations and consumer confidence are important in determining fluctuations in aggregate spending. In your opinion, what is the present status of consumer confidence?
If the MPC increases, what must happen to the MPS? How is the MPC related to the consumption function? How is the MPS related to the saving function?
The relationship between the output gap and the unemployment rate can be summarized as: when the output gap is negative, the unemployment rate is below the natural rate.