Exploring Macroeconomics
7th Edition
ISBN: 9781285859446
Author: Sexton, Robert L.
Publisher: Cengage Learning
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Textbook Question
Chapter 11, Problem 2P
Which of the following are included in
a. Cleaning services performed by Molly Maid Corporation
b. Lawn-mowing services performed by a neighborhood child
c. Drugs sold illegally on a local street comer
d. Prescription drugs manufactured in the United States and sold at a local pharmacy
e. A rug woven by hand in Turkey
f. Air pollution that diminishes the quality of the air you breathe
g. Toxic-waste cleanup performed by a local company
h. Car parts manufactured in the United States for a car assembled in Mexico
i. A purchase of 1,000 shares of IBM stock
j. Monthly Social Security payments received by a retiree
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Elasticity Problems
Cross Price Elasticity (Exy)
(QDX-QDo/[(QDN+QDDA)/2]
(P-POR/[(PNE+POB)/2]¯¯
11. QD of good A falls from 100 to 90 as the price of good B rose from $10 to $20.
Calculate coefficient:
(90-100) [(90+100) 21-10/95-105 - -.158
(20-10)/[(20+10)/2]
10/15
.667
Cite Elasticity: inclastic
Typs of good: complement
12. QD of good A rose from 300 to 400 as the price good K increased from $1 to $2.
Calculate coefficient
Cite Elasticity:
Ixps of reed:
13. QD for good I falls from 2000 to 1500 units as price of good Krose from $10 to $15.
Calculate coefficient:
Cite Elasticity:
Type of good:
14. QD for good X rose from 100 to 101 units as price of good Y increases from, $8 to $15.
Calculate coefficient:
Cite Elasticity:
Type of paed:
Page 124 (368)
Value of
Coefficient
Description
Positive (0)
Negative (L*0)
Type of Good(s)
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Quantity Demanded of W changes in same direction a change in price if Z
Quantity Demanded of W changes in opposite direction as change in price if Z…
Use production theory to graphically illustrate the case in which a medical innovation improves health without any change in the consumption of medical care.
According to Lee et al. (2009), the incremental cost-effectiveness ratio comparing the current dialysis treatment to the next least cost dialysis treatment is $61,294 per life year and $129,090 per QALY. Can you account for the different estimates?
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