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Question: 1. Define the price elasticity of demand.
2. What are the four determinants of the price elasticity of demand?
Macroeconomics, Economics
Question: 1. Suppose the marginal propensity to consume is 0.6, the marginal tax rate is 0.25, and the the marginal propensity to import is 0.2. What is the multiplier? 2. Suppose that in the economy described in the pre ...
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Question - A study was conducted to determine how people get jobs. Four hundred subjects were randomly selected and the following are the results: Job Source of Survey Respondents Frequency Newspaper want ads 69 Online s ...
Question - Suppose the demand curve for a product is given by Q = 19 - 1P + 2Ps Where P is the price of the product and Ps is the price of a substitute good. The price of the substitute good is $2.40. Suppose P = 0.60. W ...
Question: Firm 1 must decide whether to enter an industry in which firm 2 is an incumbent. To enter this industry, firm 1 must choose to build either a plant with a small output capacity (S), or large output capacity (L) ...
Question: 1) Consider the following market for a public good. Jules and Zooey each have a demand curve for the good given by P = 8 - 2Q. This public good can be supplied at a constant price MC=$8 (a) If Jules and Zooey a ...
Question: To study a macroeconomy we calculate aggregate quantities in real terms because? 1) it is then easier to take logarithms 2)it is the only way to reconcile the three approaches to measuring GDP 3) we want to get ...
Question: Good X is produced in a perfectly competitive market using a single input, Y, which is itself also supplied by a perfectly competitive industry. If the government imposes a price ceiling on Y, what happens to t ...
Question: Watch the following video clip, A big lift in consumer confidence but how much is showing through on the shop floor and answer the following questions. What has been some of the macroeconomic impacts on Harvey ...
Question: Use an internet search or the University Library to locate information on the Consumer Price Index (CPI). Internet sites you might find useful include the Bureau of Labor Statistics (BLS) and the Federal Reserv ...
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