1- That would be inelastic. Even though people gripe about the rising prices‚ that doesn’t stop people from stopping by the gas pumps to fill up.Elastic is more like candy bars or soda; if priced at 50 cents‚ there will be high demand‚ but if the price rises to 2 dollars‚ the demand will go down.Because there are many alternative brands for Coca Cola that have more or less the same taste. When the price of coca cola rises‚ demand decreases because consumers will find alternative brands that taste
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chapter twenty Demand and Supply: Elasticities and GOVERNMENT-SET PRICES CHAPTER OVERVIEW This chapter is the first of the chapters in Part Five‚ “Microeconomics of Product Markets.” Students will benefit by reviewing Chapter 3’s demand and supply analysis prior to reading this chapter. Depending upon the course outline used in the micro principles course‚ this chapter could be taught after Chapter 3. Both the elasticity coefficient and the total receipts test for measuring price elasticity
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American InterContinental University Unit 2 Individual Project Circular Flow In the textbook‚ there are two circular flow diagrams. One represents the flows in the macro-economy as a closed system and the other represents the flows as an open system. The circular flow diagrams show how money travels through the economic systems including businesses‚ households‚ foreign agents and governments (Editorial Board‚ 2013). Within the closed and open systems there are two consumers. The first consumers
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Essay Question 5b: To what extent have the main economic problems faced by Singapore in recent years been caused by strong economic growth. (15) Strong economic growth refers to high and sustained economic growth‚ which can be in terms of actual (an increase in Aggregate Demand – AD) and potential (an increase in Aggregate Supply – AS) growth. In recent years‚ Singapore has experienced a number of main economic problems such as negative externalities and failure to achieve equity (microeconomic)
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Consider the following in your answer: 1. What are the advantages and disadvantages of various methods of war financing? 2. What are the "costs" imposed on the economy by engaging in war? 3. Provide an example from US History; analyze the effects on economic institutions in the long run after a war. 1. In war‚ there are various economic benefits. First‚ all economic resources are being used‚ both goods and services. The unemployment rate hits the floor and there are goods being manufactured faster
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ECON2206 ASSIGNMENT 1 Question 1 MLR 1 (Linear in Parameters) – From observation of equation (2) we can see that the model in the population can be written in the form y = β0 + β1X1 + …+ βkXk + u. In the model β1‚ β2 …βk are the unknown parameters of interest and u is an unobserved random error. log(TCi) = β1+ β2log(Qi) + β3log(pi1) + β4log(pi2) + β5log(pi3) + ui (2) MLR 2 (Random Sampling) – This assumption assumes a random samples of n observations. We deduce that it would be infeasible to
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Version 111 THE UNIVERSITY OF WESTERN ONTARIO LONDON CANADA Jeannie Gillmore ECONOMICS 1022B-002/004 February 11‚ 2012 MIDTERM 1 INSTRUCTIONS: 1. The examination begins at 4:00 p.m. and ends at 6:00 p.m. 2. Check that your examination paper contains 14 pages. 3. Use a BLACK PENCIL to complete your Scantron Form. Print your NAME and complete your SIGNATURE. Enter your STUDENT NUMBER. Enter your SECTION NUMBER‚ which is either 002 or 004. 4. Please hand in Scantron Form only
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Economics 4130 SP13 Midterm 1 Review The exam will have 5‚ 10-point questions on it from the questions below. 1. List 2 data sources researchers use to estimate historical standards of living and explain what they can infer from these sources. List three indicators of economic development other than National Income measures (NI‚ GDP‚ or GNP‚ level‚ growth rate‚ or per capita) that are of interest to economists and explain what can be inferred from each of these indicators.
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Public Finance Exam II Study Guide Explain in detail and with an example Arrow’s Impossibility Theorem as is relates to cycling. • The Arrow Impossibilty Therom states that it is impossible to have a voting system that meets a set of conditions that guarantee a unique political equilibrium for a public choice‚ which means that majority rule cannot be relied on to reach a political equilibrium. For However‚ a voting rule can produce unique public choices when voters have preferences that meet
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Chapter 20 Measuring GDP and Economic Growth Gross Domestic Product • • • • • GDP or Gross domestic product is the market value of all the final goods and services produced within a country in a given time period. A final good (or service) is an item that is bought by its final user during a specified time period. An intermediate good (or service) is an item that is produced by one firm‚ bought by another firm‚ and used as a component of a final good or service. Study Figure 20.1 on p. 469 of your
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