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Macro04

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HOMEWORK ASSIGNMENT FOR CHAPTER 1 1) The figure below
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... c. macaroni and cheese are substitute goods d. macaroni and cheese is an inferior good for Brenda e. Brenda's income elasticity of demand for macaroni and cheese is positive 35 .Suppose that the income elasticity of demand for college education is 1.3. This indicates that a. college education is a n ...
Chapter 3: Demand and Supply Applications
Chapter 3: Demand and Supply Applications

... 3. If a firm’s price and total revenue move in opposite directions, demand is elastic. If the firm’s price and total revenue move in the same direction, demand is inelastic. If the firm’s total revenue does not respond to a change in price, demand is unit elastic. 4. Occasionally, the government wil ...
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Grey market

A grey market (sometimes called a parallel import, but this can also mean other things; not to be confused with a black market or a grey economy) is the trade of a commodity through distribution channels which are legal but are unofficial, unauthorized, or unintended by the original manufacturer. The most common type of grey market is the sale, by individuals or small companies not authorised by the manufacturer, of imported goods which would otherwise be either more expensive in the country to which they are being imported, or unavailable altogether. An example of this would be the import and subsequent re-sale of Apple products by unlicensed intermediaries in countries such as South Korea where Apple does not currently operate retail outlets and licensed reseller markups are high.
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