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Consider the fictious good Derp. The demand for Derp is Q = 1200 - 2p. Suppose the supply is given by Q+-600+2P. Enter numbers only. If decimal, include decimal and round to nearest tenth.
For the next seven questions, suppose a per unit excise tax of $50 per Derp is levied on the consumers.
Suppose the domestic and foreign interest rates are both initially equal to 4%. Now suppose the foreign interest rate rises to 6%. Explain what effect this will have on the exchange rate. Also explain what must occur for the interest parity condit..
Quinton needs a new refrigerator. He has two choices a basic one, or a more efficient one from Energy Star. He earns 4% compounded annually on his investments, he wants to consider a 10-year planning horizon, and he will use present worth analysis to..
Suppose the supply and demand for milk is described by the equations Qd=600-100P, Qs = -150+150P, where P is price in dollars.Create supply and demand tables corresponding to these equations.
Derive the Aggregate Demand (AD) curve graphically, the experiment is to change Y in i-Y space and see what happens to P.
Illustrate what was the industry's method for determining that there was an inequality.
What type of market structure is OPEC? What are some important issues that OPEC must confront in their efforts to control the price of oil?
How large is the US trade deficit (relative to GDP) - How has the trade deficit changed recently and Do you expect this trend to continue?
You need to find the new interest rate that is required to stimulate I. the increase in I has to be sufficient to push the overall Y level back to the original Y level that you have found in (i).
Provide association between what you learn from economic models and concepts in class with real-life events happening around you.
You are the manager of Taurus Technologies and your sole competitor is Spyder Technologies. The two firms' products are viewed as identical by most consumers. The relevant cost functions are C(Qi)=4Qi and the inverse market demand curve for this u..
Assuming that absolute purchasing power parity holds, what should the U.S./Canadian exchange rate be if the CPI in Canada is 225 and the CPI in the U.S. is 179 and the U.S. interest rate is 6%?
You can obtain a loan for $100,000 at a rate of 10 percent for two years. You have a choice of paying the principal at the end of the second year or amortizing the loan that is, paying interest (10 percent) and principal in equal payments each year. ..
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