Is Price Elasticity of Demand always Negative? Give example when price elasticity of demand becomes positive

Q: What is the wholesale cost of an item, if the retail cost is $37 and the amount of markup is $7? Use…

A: Retail is the sale of goods to final consumers and the units sold is individual unit of good.…

Q: 8. Information Asymmetry (lemons' market) In some industries it is very difficult to monitor the…

A: Information asymmetry refers to a situation where one of the parties in a trade lacks information…

Q: One of the problems of using the CPI is that it Multiple Choice has difficulty adjusting for the…

A: CPI (Consumer Price Index) is a measure of inflation. It measures the change in prices of a basket…

Q: (d) What do we mean by an exit price? What is the exit price if r = $100 and w = $2000? Explain. (e)…

A: Cost minimization problem of producer: For the given output level the firm and per unit cost of…

Q: ariswer the following questions: The monopoly will produce units and charge a price of $ (Enter your…

A: A monopoly firm produces at the intersection of MR and MC curves to maximize profit.  Economic…

Q: Lafayette Group (U.S.). The Lafayette Group, a private equity firm headquartered in Boston, borrows…

A: When a currency depreciates, it loses worth in comparison to the currencies of other nations. There…

Q: Find out the cross rate between US$ and British Pound Sterling(£) if the spot rate between British…

A: Given information: Spot rate between British Pound Sterling (£) and Japanese Yen (¥) Exchange rate:…

Q: Which of the following correctly describes an external benefit resulting from an individual's…

A: Externality is the benefit or cost that will be born by third party.  There is positive externality…

Q: The production function is f(L,K)= L2/3K¹/3, where L is the amount of labor and K is the amount of…

A:

Q: Which of the following correctly describes an external benefit resulting from an individual's…

A: The external benefit is defined as a benefit enjoyed by the person as a result of economic activity…

Q: If a firm uses n inputs (n > 2), what inequality does the theory of revealed cost mini- mization…

A: Cost minimization is the process of cutting costs associated with pointless or ineffective…

Q: The knowledge that you possess about your driving habits that your insurance company does not…

A: The perfect competition market leads to the efficient distribution of goods and services and one of…

Q: The table above shows Econland’s economy aggregate demand and aggregate supply schedules. Econland’s…

A: Aggregate demand (AD) depicts the inverse relationship between the price level and real GDP…

Q: An investment has the potential of eaming you $5000 at a 15 percent probability, $3000 at a 45…

A: Expected value of investment is the sum of the product of earning potential with their probability.…

Q: A newly proposed project has a first cost of $ 230815 and estimated annual income of $49110 per year…

A: Present value is the value is the value of investment in today's dollar.  Future value is value of…

Q: For the most recent fhscal year. did the US government operate at a Surplus or a deficit?

A: A government determines its budget by estimating its anticipated spending and making measures to…

Q: 3. Refer to the data on the right. A. Solve for variable cost (VC). B. Assume the selling price is…

A: Total Variable costs are the cost which is being incurred by the producer which depends on the…

Q: Which of the FF. addresses distributional issue? A. providing scholarships to children of poor…

A: Distribution, to put it simply, means to share each person's effort. The price of production inputs…

Q: Transactions demand for currency reflects which of the following?: Mark all that apply   Demand to…

A: Money is the medium of exchange that is used for economic transactions. Money can be in the form of…

Q: Seung's utility function is given by U - C^(1/2), where C is consumption and C^(1/2) is the square…

A: The expected utility of any individual is given by: Expected Utility = (probability of loss)(Utility…

Q: n 2007, France's government had revenue of $1.287 trillion while expenditures totaled $1.356…

A: An Government budget is a monetary report that shows the public authority's arranged pay and…

Q: Consider a consumer with the following utility function: U(X1, xz) = In(x1 + 4) + In (Xz + 6) for…

A: A consumer maximizes his or her utility given the budget constraint when he or she consumes at the…

Q: If the calculation of the poverty line included the value of government programs as income, the…

A: The poverty rate of a country is merely and actually calculated basically on the basis of either…

Q: Suppose we have the following production function: Q = K + 10L. Confirm the technology is constant…

A: Given production function: Q=K+10L  A production function is said to be a constant return to scale…

Q: 21. Suppose the closed economy is in long-run equilibrium. Pessimism on the part of investors then…

A: Let's first understand both the concepts of multiplier impact and short run Phillip curve as…

Q: Suppose a firm is charging $8 for the first six-pack of cola and $4 for the second six-pack of cola.…

A: Price discrimination can be defined as a selling strategy adopted by an entity where in it charges…

Q: Through a regression analysis of 1000 diamonds weighted between 0.2 and 0.5 carats, researchers…

A: Regression analysis is used to forcast the value of dependent variable using the relationship…

Q: What is the main issues/criticism in monopoly market.

A: A corporation that has a monopoly is one that essentially provides all of an item or service, giving…

Q: asmeen purchased stock on January 30, 2017. If she wishes to achieve a long-term holding period,…

A: Capital assets are a type of asset the taxpayer purchases as a long-term investment. The purpose of…

Q: A newly proposed project has a first cost of $ 211962 and estimated annual income of $46410 per year…

A: The worth of an investment when measured in today's dollars is referred to as its "present value."…

Q: a. Suppose on the date these yields were observed, investors required a term premium of 0.1% to hold…

A: The yield curve represents the expectation of the return on the bonds. The yield curve is a…

Q: Which of the FF. addresses distributional issue? A. providing scholarships to children of poor…

A: Distribution, to put it simply, means to share each person's effort. The price of production inputs…

Q: Based on the inflation rate between 2008 and 2009 and between 2013 and 2014, if your boss told you…

A: Purchasing power is the value of a currency expressed in terms of the number of goods or services…

Q: The product cycle model was introduced by: O A. Wassily Leontief. B. Alfred Marshall. C. Eli…

A: The product cycle means the period of time of introducing a product to the market until it is…

Q: manufacturing plant has a short-run cost function of C(q) = 100q 72 +0.2q³ + 450. What is the firm's…

A: Short Run Cost is the cost which has short-term inferences in the assembling strategies, i.e., these…

Q: 1. Suppose a wave of pessimism discourages business confidence due to COVID-19. As a result, firms…

A: Let's First understand the concept of flexible exchange rate before answering the question:-…

Q: Ct and the following budget constraint: + 1- - a Ct+1 1+ R ft + Yt + Yt+1 and let c be consumption,…

A: Euler's equation is a differential equation. In economics, it is the equation that shows the…

Q: My aunt is thinking of opening a simple café in your neighborhood. She estimates that it would cost…

A: Accounting profit will be calculated as net income or revenue minus explicit costs.. Economic profit…

Q: 55 50 45 40 35 30 25 20 15 10 O 50 10 20 30 40 50 60 70 80 90 100 The government imposes a price…

A: Producer surplus refers to the producer welfare; and will be computed as a difference between the…

Q: Many U.S. interstate highways are crowded with traffic, but tolls are not collected even when the…

A: The United States is opting for the no-toll policy, resulting in many US interstate highways being…

Q: (You can solve this -- think through all the formulas you know!) Suppose you know the following…

A: In short run ,  Capital is fixed and labors are variable.  Average variable cost is the difference…

Q: Y-KILI. Suppose there is perfect competition. The real rental rate of capital is rx-1 and the real…

A:

Q: All else constant, if the GDP in an economy decreases then: demand for money increases.…

A: The gross domestic product (GDP) refers to the total monetary value of all completed goods and…

Q: Calculate the marginal average cost for the indicated function:  C(x) = 0.003 x3 - 0.3 x2 + 40 x +…

A: Average cost is the cost of production per unit.  Average cost is calculated by dividing the…

Q: An apartment building in your neighborhood is for sale for $500,000. The building has 5 units that…

A: The IRR equivalent the discount rate that makes the NPV of future cash flows equal to 0. The IRR…

Q: A small island nation of Gondwana can produce either 40 Apple iPhones (Apple for short) or 80…

A: When a country is able to produce a certain good or to provide a service at a lower opportunity cost…

Q: The Indian government constructs houses for the homeless, to move them out of the slums. Soon as…

A: Public policy is the term used to describe the measures taken by the central administrative…

Q: An expansionary fiscal policy with crowding effect Select one: a) Reduce private spending b)…

A: Expansionary fiscal policy is a type of macroeconomic policy that aims to stimulate economic growth.…

Q: Can you also include the contractor curve, the concept of endowment redistribution, and the utility…

A: In this case, we have to know the case of Edgeworth box. In this case, there is a contract curve…

Q: A: Suppose the initial demand at the price of $10 was 100. When the price rises to $12, the demand…

A: Price elasticity of demand is calculated as the ratio of the percentage change in quantity demanded…