What economic forces might explain why the relative price of telephone services fell while the relative price of medical care increased between 1983 and 2013?
Answer to relevant QuestionsSome people have argued that the United States cannot afford a volunteer army in which wages are high enough to attract competent enlistees. Instead, they suggest paying lower wages and drafting the required number of ...Suppose that the demand curve for corn is downward-sloping but that the supply curve is perfectly price inelastic at a quantity of Q* once the corn is harvested. Furthermore, assume that the equilibrium price is $ 5 per ...“A decrease in supply will lead to an increase in the price, which decreases demand, thereby lowering price. Thus, a decrease in supply has no effect on the price of a good.” Evaluate this statement.Sam is subject to a 40 percent tax on income, and her after-tax income is $ 90,000, as in Figure. Now sup-pose the government permits her to deduct her contributions (to Oscar) from her income before the 40 percent tax rate ...Using indifference maps, explain how Kraft’s makeover of the Oreo successfully accounted for different consumer preferences in China versus for low-sugar, wafer-like cookies versus higher- sugar, biscuit-like cookies in ...
Post your question