The current price of canvas messenger bags is $36 each and sales of the bags equal 400 per week. If the price elasticity of demand is -2.5 and the price changes to $44, how many messenger bags will be sold per week? Use the midpoint formula
What will be an ideal response?
Using the midpoint formula: -2.5 = (400 - X) / [(X + 400 ) / 2] / (36 - 44 ) / [(36 + 44 )/2]
-2.5 × -0.2 = (400 - X) / [(X +
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Explain the three different types of money demand
What will be an ideal response?
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a. inflation rates. b. unemployment rates. c. budget deficits. d. growth in productivity. e. monopoly power.
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Answer the following statement true (T) or false (F)
Suppose that Canada can produce 15 units of timber or 3 units of grain. Suppose that Mexico can produce 6 units of timber or 2 units of grain. Which of the following is CORRECT?
A) Mexico has a comparative advantage in grain production. B) Mexico has an absolute advantage in timber production. C) Canada has a comparative advantage in grain production. D) The countries would find trade mutually beneficial at a trading ratio of 1 grain for 2 timber.