State true or false and justify your answer: If the quantity demanded for good A increases from 40 to 60 when the price decreases from $9 to $7, the absolute value of the price elasticity of demand in this price range is 1.6. The rati...
The supply of teachers determines the number of individuals willing to enter the profession and to teach in a given school, but the number of teachers actually hired and the characteristics of those teachers also depend on the demand. Important among demand factors are student enrolments, teacher...
determines the wages of the workers according to the expected price level If the actual price level in the future is below the expected level That is, deflation then The nominal wages of the workers remain unchanged But real wages have risen The increase in salary increases the actual cost of...
Regarding market substitutability, we find evidence only among specific firms; it disappears when the entire sample is used. In particular, only domestic firms exporting low- and medium-technology products switched from foreign to domestic markets as the demand in the latter was stronger, especially ...
The speed of mean-reversion \(\uptheta\) determines how fast the electricity price is expected to return to its long-term price pattern during the next discrete time increment. If \(\theta =1\), the electricity price in \(\mathrm{t}+1\) is expected to equal the adjusted long-term me...
a cause that determines the will^ (Kant 1785/2011, p. 147). Now, different types of interests are at work in the two different areas of human activity which Kant distinguishes: Within the area of instrumental rationality or of hypothetical imperatives, Bpractical reason^ is Badministering the...
Workers will receive higher wages when an employer faces an upward-sloping supply curve for labor. True or false? State whether true or false. An increase in real consumer income will shift both the supply and demand curves. True or false? In the goods market, i...
The Aggregate demand schedule in the Keynsian model is the amount demanded by Consumers + Business + Government at each price level. Draw up a coordinate plane with price level on the vertical axis and output on the horizontal and plot the points from the schedule on it. Whe...
The product's manufacturer sets: (i) a wholesale price “w/unit” for selling the product to the retailer, and (ii) the refund amount “r/unit” (if any) for unsold units returned by the retailer. Given w and r, the retailer determines: (i) the quantity Q that he orders from the...
When capital costs are flexible, the price of capital will adjust to clear the capital market: Let r be the rate at which capital is rented out to firms, and let γj be the fixed capital requirement of firm j (so that fj=rγj). If the capital market is flexible, then the rate ...