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Q1. Suppose the supply of coal is perfectly inelastic, and the price elasticity of demand for coal is -0.4. If the government imposes a binding price ceiling for coal at a price that is 20 percent below the market equilibrium price, what is the impact of this policy on the market quantity?
Q2. In the article "A Perspective on Inflation Targeting", Ben Bernanke dispute to facilitate the depth of the 1973-75 recessions was reason only in part by amplify in oil prices per sec. Does the aggregate demand-aggregate supply model support Bernanke's thesis?
Numerous times in the lectures labelling the vertical axis as euro per $ and the initial supply and demand curves labelled with 12/07, Label this initial point as point A.
Assume that we care about the average welfare of individuals in Indian villages, i.e., we put equal weight on each individual's utility.
Economists argue that the move from barter to money increased trade and production. How is this possible.
If the foreign country enters the market first, determine the equilibrium price and quantity. Will both countries produce. Show both average cost curves and the equilibrium.
What is the deadweight loss if buyers, instead of vendors, are required to pay the tax of $4 for each unit of the good sold.
Visualize you are a manager for good or service used. From results of the deterioration equation, recommend strategies to either preserve demand if an increase over 3 periods occurs or improve demand
Explain the paradox of why new cars usually lose a large fraction of their market value the moment they are driven from the showroom. Identify the economic principle that explains this paradox.
Explain why the R-squared from the regression from F test will always be at least as large as the R-square from the BP regression.
The cost curves of the firm. In terms of economies of scale, why would a firm sometimes want to expand output and sometimes not want to expand output.
Calculate whole expected convenience from each restaurant option and also compare?
Identify one positive or negative supply shock in the last decade and what is the impact that the shock has had in our economy.
Fully explain your answer in a way that shows your understanding of monopolies. Your paper should be two to three double-spaced pages and formatted according to APA style as outlined in the Ashford Writing Center.
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