When the cost of dough-making machines fell by 10 percent, the demand for assistant bakers fell by 15 percent. What is the cross-wage elasticity of demand for assistant bakers in this case? Are assistant bakers and dough-making machines gross substitutes or gross complements?

Q: One of the followings is not a primary purpose for product teardown: Competitive bench-marking. Expe...

A: Individual enjoyment is not a primary purpose for product teardown.

Q: Which tax system impacts more on the rich people, and why does it impacts them more?

A: Progressive Taxes is the tax system that impacts more on the rich people. Taxes that are assessed un...

Q: In 2010 the Greek government had to inform the European Commission on how it would control its budge...

A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...

Q: Wages that have Cost-of-living adjustments (COLAS) are guaranteed to keep up with inflation.

A: A Cost-of-living adjustment (COLA) is an increase in Social Security benefits to counteract inflatio...

Q: If the real rate of interest is 12% and the nominal rate of interes is 31%, then the rate of inflati...

A: A real interest rate is an interest rate that has been adjusted to remove the effects of inflation t...

Q: Discuss the major contributions and implications of the following theories of money demand; i. Quant...

A: The demand for money refers to the money that the people want and agree to use in favour of the serv...

Q: In the Melitz model, when a firm begins to export its product in addition to supplying the product t...

A: Melitz model refers to the model of the heterogeneous firm, in this trade liberalization reallocates...

Q: In your own words, describe the life-cycle cost concept. Why is the potential for achieving life-cyc...

A: Life cycle cost LCC is an analysis that is used in selecting the alternatives which impacts both pen...

Q: By using IS-LM-FE and AD-AS frameworks show;According to RBC theory, what is the effect of an increa...

A: The increase in government expenditure leads to a rightward shift in the IS curve and correspondingl...

Q: A company manufacturing laundry sinks has fixed costs of $100 per day but has totalcosts of $2,500 p...

A:

Q: Economics Question

A: You have asked multiple questions. We will answer the first question for you. If you want any specif...

Q: If the investment flow is I(t)-5000t0 5 calculate the capital formation from the end of first year t...

A: The accumulation of capital is called capital formation and it is also termed as the investment in t...

Q: Coca cola uses labour(L) and capital (k) in its  production process.  It estimates that the producti...

A: Q= K0.5 L0.5  The selling price of a bottle of coke = GH4 Cost of machine (capital) = GH3 Cost of ma...

Q: When price of tea in local cafe rises from birr 10 to 15 per cup, demand for coffee rises from 3000 ...

A: Cross elasticity of demand shows the relationship between price of one commodity and demand of anoth...

Q: 4- An indifference curve connects points on a graph representing different quantities of two goods, ...

A: Microeconomics studies the economic behavior of the individual units such as a buyer, a seller, a ma...

Q: Q4: Utility companies routinely ask state commissions for permission to raise utility rates. What do...

A: Since you have asked multiple question, we will solve the first question for you. If you  want any s...

Q: Which type of economic system is following in given countries, shortly describe their characteristic...

A: Economic system refers to the organised or unorganised system of allocating resources and the produc...

Q: Consider the pollution industry. Suppose that 10,000 identical agents are affected by this industry’...

A: The following problem of environmental economics has been solved as follows:

Q: Revenue If the price in dollars of a stereo system is given by p(g) = 1000 + 1000, where q represent...

A: Given  p(q) = 1000/(q)^2 + 1000. Total revenue = p × q  Total revenue = [1000/(q)^2 + 1000] × q  Tot...

Q: Imagine there is a perfectly competitive market. The market demand and supply are reflected in the f...

A: Given information: Quantity demanded (Qd) = 78 - 3P Quantity supplied (Qs) = 28 + 2P      

Q: Show in a diagram the effect on the demand curve, the supply curve, the equilibrium price, and the e...

A: Since you have asked multiple question, we will solve the first question for you. If you  want any s...

Q: An individual's preferences are described by the utility function: U(M) = MO.5, where M denotes mone...

A: Utility refers to either the enjoyment or the usefulness which a consumer tends to derive from the c...

Q: Using the formula Qs = 100 + 40p, find the quantity supplied when the price is $6.00.

A: Qs = 100 + 40p P= $6.00

Q: A perfect competitive firm estimates her cost function as given below: C = 100 + 5Q^2a. What is the ...

A: A perfectly competitive market has large number of buyers and sellers. An individual seller has no c...

Q: Prospect Z = ($1, 0.30 ; $18, 0.40 ; $25, %3D 0.30) What is the standard deviation of prospect Z?

A: SD = EX2-EX2

Q: 2. Suppose country A has a central bank with full credibility, and country B has a central bank with...

A: When it involves the consequences of financial institutions on the economy, it is often well said th...

Q: An entrepreneur wants to have P100,000 3 years from now. What amount should he invest now if it will...

A: Given  A entrepreneur wants to have 100,000 in 3 years from now.  Let principal amount = P . For two...

Q: Considering the given possible uses of candy, which of the four choices could be Pareto Efficient (a...

A: These are concepts of Welfare economics that have been discussed as follows:

Q: A firm has the production function f(x, y) = x"y3, where a>0.7 This firm has Select one: a. None of ...

A: The term marginal product (MP) of a factor refers to the change in production of output due to emplo...

Q: Eric lives in Miami and runs a business that sells pianos. In an average year, he receives $851,000 ...

A: An implicit cost is a cost that has occurred already and is not necessarily reported as an expense s...

Q: 24. If Botswana had a -3.5% growth rate between 2015 and 2016, and then it had a 3.5% increase betwe...

A: Growth rate is determined by GDP per capita. GP per capita is determined by dividing Gross Domestic ...

Q: 7. Claude’s Copper Clappers sells clappers for $65 each in a perfectly competitive market. At its pr...

A: Since you have asked multiple question so we will solve the first question for you if you want speci...

Q: In the United States, inequality in wealth is inequality in income. O less than O exactly the same a...

A: As per the data, the top 20% owns the 86% of wealth in the US. Hence, there is inequality in wealth.

Q: Inflation creates business uncertainties. What fiscal and monetary policy measures are taken to curb...

A: In inflation,price levels are high.Therefore to curb inflation money supply has to be decreased.

Q: The manufacturer of Brand A automobile tires claims that its tire can save 120 gallons of fuel over ...

A: Given Brand A tire can save 120 gallons of fuel over 56,000 miles of driving, as compared to a popul...

Q: A firm has the demand and total cost schedules given in the following table. If it wants to maximize...

A: Given  Total revenue = price × quantity  Profit = Total revenue - Total cost Quantity Price Total...

Q: Nestle Ltd. It produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and...

A: The optimal duration of downtime refers to the time elapsed between two orders.  Annual holding cost...

Q: DRAW the figures to COMPARE the effects in the small open economy with perfect capital mobility and ...

A: The comparison of the small economy and large economy with various conditions can be done with the I...

Q: Consider the country of Freedonia. Let į= 0.05. Groucho, a man living in Freedonia, is trying to fig...

A: Present value refers to the sum of all money in the contract to some future value that will be inves...

Q: Explain the principal problem involved in using a dividend valuation model to value companies that a...

A: Dividend valuation method is a method of valuation of the company using the company shares and futur...

Q: Theo and Addy are deciding what toys to pick out at the toy store.  Depending on what toys they pick...

A: The best possible outcomes refer to the outcomes that provide better payoffs for the player after ob...

Q: Monopolies and Monopolistic Competition   Describe the types of inefficiencies that derive from mono...

A: Market structure in an economy can be defined as the organizational characteristics of a market. Als...

Q: the state of wellness industry in Pakistan” Out of the ten sectors of wellness industry, you have to...

A: The industry has been growing with 12.8% between 2015 and 2017 and represents 5.3% of worldwide econ...

Q: A company has established that the relationship between the sales price for one of its products and ...

A: It is given that, P = 75 – 0.1D Fixed cost = $1000 Variable cost = 30D Therefore, Total cost (TC) = ...

Q: How would the Canadian economy be different if the United States had not been one of our most import...

A: The economies of Canada and the United States are comparative since they are both developed countrie...

Q: Population size is no guarantee for economic prosperity. However, developing countries that have low...

A: Population size is no guarantee for economic prosperity. However, developing countries that have low...

Q: Hi can you help me on my assignment? Just explain these 2 things in your own words. Kindly type your...

A: 3.1 The country C is the second largest economy in the world and country U is the super power which ...

Q: List and describe determinants of productivity.

A: In economic terms, productivity refers to the total output produced per unit of input, this input ca...

Q: Questions 1 and 2. Thank you

A: The marginal product of labor refers to the change in output by employing one extra unit of labor. W...

Q: There are two periods. Peregrine consumes (£700, £880) and earns (£600, £990) in periods 1 and 2, re...

A: The wealth of the consumer or the producer refers to the current endowment along with the future end...