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if elasticity is -2,price is $10, and marginal cost is $8, should you raise or lower price?
Macroeconomics, Economics
Question - Analyze what economists mean when they say that monetary policy can exhibit cyclical asymmetry. How does the idea of a liquidity trap relate to cyclical asymmetry? Why is this possibility of a liquidity trap s ...
Question: Draw the supply and demand diagram for reserves with the curves intersecting on the downward sloping part of the demand curve - diagram A. Draw a second graph with the intersection taking place on the horizonta ...
Question: Suppose that a city operates two neighborhood schools, one in the rich neighborhood and one in the poor neighborhood. The schools are equal in size and currently have equal budgets. The city receives $10 millio ...
Question - What do you predict will happen to the foreign exchange rate if interest rates in the United States increase dramatically over the next year? Explain, using a graph of the foreign exchange market. How would su ...
Question: The price of CDs is $15 and the price of pizzas is $10. Derek spends all of his income buying 2 CDs and 6 pizzas per week (and nothing else). Determine Derek's income, draw his budget line and represent his uti ...
Question: A firm invents and obtains a patent for a new strong, biodegradable fabric that is used to makegrocery bags. The demand function for these bags is Q = 800 - p. The firm's cost function isC(Q) = 100 + 100Q + 0.5 ...
Question: Suppose US college students, studying in France during the summer term, wish to remain in the country an extra two weeks and purchase train on the Indian Pacific rail line tickets in order to travel from Sydney ...
Question - Suppose either computers or televisions can be assembled with the following labor inputs: Units produced 1 2 3 4 5 6 7 8 9 10 Total labor used 3 7 12 15 25 33 42 54 70 90 The following production possibility c ...
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 ...
Assignment 1: This assignment will enable you to apply the determinants of supply and demand, market equilibrium, and price elasticity for a product This assignment will cover the following course outcomes: Describe and ...
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