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You buy a house and pay for it. A year later the price of houses changes while all other prices(and your cash income) remain the same. Assume that houses can be sold and bought without incurring transactions costs. Show that the price change makes you better off irrespective of wheter it was an upward or a downward change.
Has the U.S. economy achieved full employment equilibrium yet (let’s say within 0.1%)? Explain how we define ‘full employment’ and how you can tell whether or not that goal has been achieved. find the most recent estimate of the actual unemployment r..
The Department of Justice concluded that satellite radio is not a market in and of itself while reviewing XM and Sirius merger. What other kinds of competitors did the DOJ include in the market? Discuss.
How does the change of consumer and producer surplus compared to the tax revenue.
Two identical fishermen, Jill and Kevin, fish from the same lake. Since they are only two small producers, they cannot effect the price paid for their fish (P = 100), but they do influence each other’s costs. Write down the profit function for each f..
Supposing you want to see how student perception about civic engagement change in college. You collect data on first year students in 2010, and then collect data from the same students in 2014, their senior year. Does your data have limited dependent..
compute the price elasticity of demand between successive points. Which price maximizes publisher's revenues. Calculate and explain.
The payment to resource owners has to be equal to ____ in order to keep the resources in their current use. The term price maker
"The demand relationship for the good is P = 25 - 3Q. The supply relationship for the good is P = 5 + Q. Who bears the economic incidence of a tax if there is a $1 per unit tax on the buyer of this good? Who bears the statutory incidence? Who bears t..
q.apex corporation has an equity cost of capital of 14.4 and a debt of 6 and the firm maintains a debt equity ratio of
Please consider the case of monopolistic competition.
Define three types of elasticity of demand. Indicate how you would use information from recent research paid by your company that the own price elasticity of your product is -1.2 and not -0.8 as previously thought
Imagine that a $10,000 ten-year bond was issued at an interest rate of 6%. You are thinking about buying this bond one year before the end of the ten years, but interest rates are now 9%. Calculate what you would actually be willing to pay for this b..
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