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Nata [24]
4 years ago
9

Two drivers, walt and jessie, each drive up to a gas station. before looking at the price, each places an order. walt says, "i'd

like 10 gallons of gas." jessie says, "i'd like $10 worth of gas." what is each driver's price elasticity of demand
Business
1 answer:
koban [17]4 years ago
8 0
In the question above, Walt asks for 10 gallons of gas while Jessie asks for $10 worth of gas. In both the cases, the drivers need gas but Walt is concerned about the quantity of gas and Jessie is concerned about the price of the gas.
In case of Walt, the price elasticity of demand is zero because he want 10 gallons of gas regardless of the price of gas per gallon. While in case of Jessie, the price elasticity of demand is one because he wants to buy gas worth $10, no matter what is the price of the gas per gallon.
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Answer:

D.

Explanation:

Firms will hire more labor when the marginal revenue product of labor is greater than the wage rate, and stop hiring as soon as the two values are equal.

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4 years ago
At the beginning of a recession in 2018, unemployment begins rising. Unemployment increases from 4.6% to 7.9% in 4 months. What
Sergeeva-Olga [200]

Answer:

Should be done: a counter cyclical or a growth-oriented  fiscal policy ,deficit spending and stabilize the aggregate demand.

Explanation:

Keynesian economy is a macroeconomic theory based on the views of the 20th century British economist John Maynard Keynes. Keynes' economy advocates a mixed economy where the private sector is predominant but the state and the public sector play a major role. According to the Keynesian theory, the sum of all the micro-economic behaviors shown by all individuals and businesses results in inefficiency and the economy operates at a level below its potential output and growth. When total demand for products is insufficient, the economy enters a crisis and unnecessary unemployment arises due to defensive behavior of the producers. In such cases, the government may pursue policies to increase aggregate demand, and as a result may accelerate economic activities and reduce unemployment. Most Keynesian propose policies to stabilize the business cycle. For example, if the unemployment level is too high, the state can pursue a growth-oriented monetary policy.

Keynes was thinking of reviving the economy with low interest and state investments as a solution to the Great Depression. The government increases investment income and consequently consumption, resulting in more production and investment, resulting in increased consumption again. The first economic stimulus investment triggers a series of events and the subsequent investment provides a much tougher economic efficiency. According to Keynes, money supply is provided by monetary authority (eg central bank) and monetary policy affects prices. When interest rates fall below this normal rate, investors avoid buying bonds and prefer to hold cash in anticipation of higher rates. When interest rates are above this normal rate, they tend to buy bonds with the expectation that they will fall. Therefore, it can be said that there is a negative relationship between money demand and interest rate.

8 0
4 years ago
Toby has been working on collecting tidbits over the past year from a financial firm's trash in an effort to eventually break in
FinnZ [79.3K]

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By acting or posing as a waste management collector looking to fix the dumpster or collect the debris

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Most cyber crimes are usually well organized. The individual committing the crime usually puts a lot of efforts in achieving their goal. Toby could only have gained access to the company dumpster if he poses as the one or company sent to collect the trash.

4 0
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Answer:

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5 0
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If a small electric automobile manufacturer is able to gain the social return generated by its electric motor, its demand for fi
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This means that since the financial capital shift to the left, there will be a reduction in the demand for financial capital.

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