Suppose that the price elasticity of demand for wheat is known to be -0.75. Will a good wheat crop (which increases the supply of wheat) be likely to increase or decrease the revenues of farmers? Carefully explain
What will be an ideal response?
A good wheat crop that increases the supply of wheat will cause the equilibrium price of wheat to decrease (and quantity to increase). Since demand is inelastic, total revenues will fall, as the percentage change in quantity will be less than the percentage change in price.
Economics
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In the figure above, Nike maximizes its profit if it charges ________ per pair of shoes
A) $75 B) $60 C) $72 D) $42
Economics
A worker has a marginal product of 15 units a day, each of which can be sold for $10. Is it profitable to hire this worker if the wage rate is $100 a day? Briefly explain your answer
What will be an ideal response?
Economics