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The demand and supply for a particular commodity are given by the following two equations: demand p= 110-3Qd and supply p=-10+3Qs
Determine the equilibrium price and equilibrium quantity.
Discuss how the article relates to concepts & theories (international investment) examined (clearly note the concepts & theories being illustrated)
Describe how price regulation may improve the performance of monopolies. In your answer distinguish between socially optimal pricing and fair return pricing.
Suppose desired investment for the economy represented in the table above is $200 billion. Plot the consumption and investment function. What value is the equilibrium level of income What is the marginal propensity to consume
Laws of supply and demand
Given your answer above, explain whether, all else equal, the supply of the IRP increases, decreases, or remains unchanged. Explain the reason for your answer and depict it on your graph above.
What happens to consumer surplus and what happens to total surplus assuming the government sells the consumer
How does each of the following actions by the FED (traditionally) influence the monetary base and the money supply?
At a price of $5 the profit-maximizing output for a perfectly competitive firm is 1,000 units per year. If the average total cost is $3 per unit, what will be the firm’s profit? If the average total cost is $6 per unit, what will be the firm’s profit..
Which of the following best illustrates the law of diminishing marginal utility?
Explain the law of diminishing returns in your own words. This idea can be applied to other concepts in economics. Think about your own utility from consumption. Give a personal example of diminishing utility.
Suppose the consumption function is: C = a1 Yd + a2 WRE/S + a3CC Where all the a's (the sensitivity parameters) are greater than zero. Initial conditions: Let a1 = 0.60, a2 = 0.04, a3 = .5, WRE/S = 18,000: CC = 90 Solve for C in terms of Yd. Se..
assume that the regulator knows the marginal cost of abatement fairly well but there is uncertainty about marginal
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