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Economy

The price elasticity of demand for health care has been estimated to be ?0.2. Characterize this demand as price elastic, unit price elastic, or price inelastic. The text argues that the greater the importance of an item in consumer budgets,…

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supply

What effect will each of the following have on the price of wine, which is a normal product regarded by many consumers as a substitute for beer and a complement to cheese What effect will each of the following have…

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income elasticity

if the proportion of income spent on a goods increases as income increases,then income elasticity for the goods is a)greater than one b)less than one c)one d)infinite "The correct option is a). This is because the income elasticity of demand…

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theories of consumption

As an economist which of the various theories of consumption is the best There are many theories of consumption in economics; life cycle hypothesis, permanent income hypothesis and Keynesian consumption function. 1. Life cycle hypothesis; it has been developed by…

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linder theory of international trade

explain llinder theoy with the help of diagram An economic hypothesis that posits countries with similar per capita income will consume similar quality products, and that this should lead to them TRADING with each other. The Linder hypothesis suggests countries…

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EU requirements

explain how EU requirements influence markets in UK The European Union as well as the government of UK plays a big part in influencing business activity today: i) through taxation and spending ii) through laws, directives and regulations iii) through…

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Managerial Economics

A manufacturing firm produces output using a single plant. The relevant cost function is C=500+5Q2. The firm's demand curve is P=600-5Q. a) Find the level of output at which average cost is minimized. What is the minimum level of average…

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25 Macro Economics Questions

Question 1 (Multiple Choice Worth 4 points) Antitrust laws attempt to support prices at high levels so firms can earn profits establish minimum wages prevent monopolies or collusion enforce fair trade laws Question 2 (Multiple Choice Worth 4 points) The…

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