When JMU decreased its tuition from $300 per credit to $250 per credit the enrollment increased from 20,000 to 30,000. Explain if JMU education is elastic or inelastic.
Q: Given the utility function U = 0.4* X₁, 0.25 * X2, 0.35 * X3 and income M = 300, how much will the…
A: The utility function given in the question is for three different preferences segregated by a comma…
Q: The owner of Tommy's Technicians has found that his shop is losing money and he is in jeopardy of…
A: The owner of Tommy's Technicians has found that his shop is losing money and he is in jeopardy of…
Q: What is the monthly profit or loss if the company stays with Clunker and sells 90,000 bags per…
A: Profit is the difference between the total revenue and total cost. Total revenue is the product of…
Q: What is the significance of the concept of rational ignorance? Question options: It explains…
A: Voting is a method of determining the decision of the majority of people. Voting may give…
Q: If the matrix x [²21] ₁ is singular. Find the value of a. 13
A: A matrix is singular only if it is square and has a determinant equal to zero. We will use this and…
Q: Find the cquilibrium price and quantity, the consumer surplus, producer surplus, and total surplus…
A: Equilibrium is where the demand curve intersects the supply curve. Consumer surplus is the area…
Q: Consider a consumer with the utility function U(F,C) = min(F,2C); that is, the two goods are perfect…
A: When two goods are perfect complements then these goods are consumed in a fixed proportion and the…
Q: Given the utility function U=0.4∗X1,0.25∗X2,0.35∗X3U=0.4∗X1,0.25∗X2,0.35∗X3 and income M=300M=300,…
A: In economics, the utility function means the fulfillment of a consumer as a function of the…
Q: What is the rationale for FDA regulation of drugs?
A: The FDA (Food and Drug Administration) is a federal agency of the Department of Health and Human…
Q: Trade Protectionist tools include all of the following except: Select one: a. Open Borders for…
A: Trade restrictions are any kind of barriers put in place to prevent the import and export of…
Q: We expect that monopolies will set a price ___________ their marginal cost.
A: In case of monopoly , The firm will produce it's profit maximizing quantity. The profit maximizing…
Q: Allegiant Airlines is considering an overbooking policy for one of its flights. The airplane has 50…
A: To find the average net profit of provided limits we need to find the expected level of reservations…
Q: d. $20
A: In the long run competitive equilibrium will be Price P= Marginal cost= Marginal revenue= minimum…
Q: 1) Obtain the reaction function of the first firm. (2) Find the equilibrium (output and profit of…
A:
Q: An asset for drilling was purchased and placed in service by a petroleum production company. Its…
A: Given cost of drilling machine = 60000 $ Salvage value = 12000 $ Useful life = 14 years Depreciation…
Q: Accusoft Systems is offering small business owners a software package that keeps track of many…
A: The term "payback time" refers to the number of years required to recover the initial monetary…
Q: Discuss income inequality, measurement and causes.
A: The economy's uneven distribution of wealth and income is the root cause of the inequality issue.…
Q: If there were 20 firms in this market, the short-run equilibrium price of rhodium would be per…
A: In economics, competition is a situation where different economic firms are in contention to obtain…
Q: Problem 1. Find the maturity value of the following simple interest investments. (i) $3125 invested…
A: Maturity value is the amount that will be received if you invest a sum of money for a certain time…
Q: (i) If $10,000 is needed in 12 years, how much should be deposited at the end of each year into an…
A: Given future value = 10000 $ Time = 12 years Interest rate = 5 % compounded annually
Q: Question 4-2+3 Suppose that the government reduces taxes os consumers. A Graphically show the effect…
A: The macroeconomic tools which the government uses to intervene and correct any imbalances in the…
Q: The terms spillover or externality refer to__ A) black-market economic activity. B) the impact on…
A: The phenomena in which one party's activities have unexpected effects for a third party who is not…
Q: A profit-maximizing natural monopoly with constant marginal cost equal to $10 sells 20 units at a…
A: The form of market where only one seller is present in the market is known aa monopoly. The per unit…
Q: A monopolist sells 100 units at a price of $10 per unit. The average total cost per unit is $6 per…
A: Types of Competition: In the parlance of economics, various types of competition may exist in a…
Q: After taking your managerial economics class, you realize that you can probably raise your profits…
A: The demand function shows the relationship between quantity demanded and price. The cost function…
Q: Crowding out causes which of the following problems? Higher interest rates will reduce private…
A: Crowding out in economics refers to a situation in which the rise in spending by the government…
Q: After Hurricane Maria, hundreds of nonprofit organizations streamed to Puerto Rico and other…
A: Mixed strategy Nash equilibrium : Under the mixed strategy Nash equilibrium at least one player have…
Q: 2. Show 3 rounds of deposits, starting with a $2000 deposit into a checking account at bank A.…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: (b) The Lorenz functions of income in a population of teachers and administration employees of a…
A: A Lorenz curve graphically represents how income is distributed in a population. The Gini…
Q: When UVA decreased its tuition from $300 per credit to $250 per credit the enrollment increased from…
A: Elasticity is an economics term that refers to the change in quantity demanded or supplied as a…
Q: Consider the following game, with a risk-neutral principal with preferences π = q - w hiring an…
A: A moral hazard arises when one party tends to take risks because the cost of risk (full or partial)…
Q: A company bought equipment worth $53,000 and paid $1,500 for freight and delivery charges to the…
A: Depreciation is the normal wear and tear of assets over the life of assets. The sinking fund…
Q: Which of the following statements captures the meaning of transitivity of preferences? a. If A is…
A: Transitivity of preferences implies that the consumer is able to rank all available bundles of goods…
Q: If the substitution effect is always greater than the income effect, then an individual's labor…
A: Substitution effect shows the change in quantity as there is switch in the alternative. In case of…
Q: Which of the following statement about insurable interest for life insurance is correct? O…
A: In essence, proving that a person or entity will suffer financial or other troubles as a result of…
Q: Which is not a Final Use Component of the Use Table: O a. Household final consumption expenditure O…
A: The input-output table represents the process of the production and uses of the goods and services.…
Q: fewer sellers in the industry relative to the long-run equilibrium amount. Now consider the long run…
A: A monopolistically competitive firm produces at the intersection of MR and MC to maximize profit (or…
Q: Consider a health insurance market. The market has many insurers so that each insurance company…
A: Given: U(X) = X0.5 Initial wealth = $100 Gym membership = $6 which reduces going to a doctor from…
Q: As the manager of Smith Construction, you need to make a decision on the number of homes to build in…
A: In economics, profit maximization happens when there is a maximum gap between TR and the TC. In…
Q: The following graph illustrates the market for small moving trucks in Eugene, OR, during Oregon's…
A: The per unit revenue by selling goods is AR(average revenue). The change in revenue due to a change…
Q: Use the information for Better Bank below to respond to the next two items. Assets Bank Reserves…
A: The amount of reservable liabilities that commercial banks must keep onto rather than lend out or…
Q: K For products A and B, the joint-cost function for a manufacturer is c The level of production that…
A:
Q: 5) The slope of the line from the origin to a given point on the total product of labor curve equals…
A:
Q: Suppose that bicycles are produced by a perfectly competitive, constant-cost industryWhich of the…
A: In case of Constant Cost Industry, supply curve is flat. The long run supply curve is horizontal. It…
Q: T or F Employing economic cost/profit instead of accounting cost/profit when making business…
A: Profits are the company's earnings that remain after all costs are taken into account. The term…
Q: Answer the question based on the demand and cost schedules for a monopolistically competitive firm…
A: The monopolistically competitive market would result in the market structure when there are number…
Q: Scenario Many small shops sell different styles of sweaters. Some stores sell higher-quality and…
A: Market Structure in simple terms refers to a structure of the firms existing based on internal and…
Q: 19) A beverage company works out a demand function for its sale of soda and finds it to be…
A: Price Elasticity of Demand measures the percentage change in quantity demanded of a good or service…
Q: 29. Company X has been contracting its overhauling work to Company Y for $40,000 per machine per…
A: Company Y cost of overhauling = 40,000 Costs associated with building facility - Initial Cost =…
Q: what is the equilibrium income in this IS-LM model? Y = C +I +G C = 200+0.8(Y-T ) I = 1,600-100r G…
A: Equilibrium interest rate is determined where the IS curve intersects the LM curve. IS curve is…
When JMU decreased its tuition from $300 per credit to $250 per credit the enrollment increased from 20,000 to 30,000. Explain if JMU education is elastic or inelastic.
Step by step
Solved in 2 steps with 1 images
- When UVA decreased its tuition from $300 per credit to $250 per credit the enrollment increased from 20,000 to 30,000. Explain if UVA education is elastic or inelastic.When the wage was $10 per hour, a group of workers supplied 30 hours of work per week on average. The wage then increased to $15 per hour, and the same group of workers supplied 35 hours of work per week on average. What is the elasticity of labor supply for this group of workers?If a 5% change in the wage is accompanied by a 7.5% change in the quantity of labor supplied, what is the absolute value of the elasticity of labor supply?
- Suppose in a particular industry 120 people are employed at a wage rate of $4 per hour. Further, suppose the wage rate increases to $6 per hour and as a result the number of people employed in the industry reduces to 90. Compute the elasticity of demand for labour. Interpret the results. Is the demand elastic?A professor in the school of business of economics carried out a research for Toyota Kenya and found the overall demand for its vehicles has an elasticity of demand of 1.3.What are some of the managerial decision-making function of the concept of elasticity of demand.College tuition has been rising at a faster rate than average prices for decades. Assess how the characteristics of the market for higher education have affected tuition. Your essay should address all of the following: Do you believe that the price elasticity of demand for college is elastic or inelastic? Discuss the factors that support your position. Do you believe that the price elasticity of supply for college is elastic or inelastic? Discuss the factors that support your position. What has happened to the demand for college over the last 20 years? Explain what resulted in this change. Does your previous answer regarding the price elasticity of supply help explain why tuition has risen so quickly? Explain your reasoning. Per-student, real government funding of higher education is lower now than it was in 2000. How would this reduced funding affect the supply of higher education? Explain. Does your previous answer regarding the price elasticity of demand help explain why tuition…
- Question 4 If wages increase at a 5% rate and the quantity demanded of labor decreases by 10%, then the elasticity of demand for labor is: 50. 0.5. 2. 10.If the demand for unskilled labor were inelastic, would the proposed increase in the minimum wage raise or lower total wage payments to unskilled workers? Would your answer change if the demand for unskilled labor were elastic? (100 – 150 words )A firm would hire 22579 workers if the wage rate is $16 and would hire 17222 workers if the wage rate is $24. What is the firm's elasticity of labor demand? (please make sure your answer has the correct sign)
- A study of the effects of the minimum wage on employment of low-skilled workers estimated the price elasticity of demand for low-skilled workers is -0.75. Suppose that the government is considering raising the minimum wage from $7.25 per hour to $7.75 per hour. Based on this information, calculate the percentage change in the employment of low skilled workers. Use the midpoint formula?Suppose that Santa Fe County, New Mexico officials propose establishing a county "living" wage of $15.00 per hour that all employers must pay. Suppose that the equilibrium in the Santa Fe County labor market for unskilled labor is $9.00 per hour with employment of 12,000. Assuming that the elasticity of demand for unskilled labor in Santa Fe County is 1.25, what is the expected reduction in employment if the higher minimum were established? (Use elasticity calculations assuming the competitive equilibrium as the base point.) (continuation of above) Suppose that the elasticity of supply to this labor market is 1.25. Find the change in supplier surplus that would occur if the higher minimum wage were enacted ***Need the bottom answer, can't figure out how to solve for it****Explain why demand and elasticity is of interest to you and why organizations should also share this same concern. Your submission should also incorporate interaction with the economic profession. This could involve contacting the local chapter in your area or engaging the professional organizations via social media.