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Question
1. The price to drive on a freeway is $0 at all times of the day. This price establishes equilibrium at 3 a.m. but is too low to establish equilibrium at 5 p.m. There is a shortage of freeway space at 5 p.m.
a. Graphically show and explain how carpooling may eliminate the shortage.
b. Graphically show and explain how building more freeways may eliminate the shortage.
2 Diagrammatically show and explain why there is a shortage of classroom space for some college classes and a surplus for others.
3 Smith has been trying to sell his house for six months, but so far, there are no buyers. Draw the market for Smith's house.
Explain how do the relationships between Congress think about both houses also the American people function today.
Suppose that no taxes are imposed, Estimate the equilibrium value of GDP if government expenditures are $50 billion and inteneded investment is $50 billion?
suppose demand and supply are given by qd 50 -p and qs12p-10.a. what are the equilibrium quantity and price in this
Elucidate how he should use information on the marginal catch at each lake to accomplish this goal. Illustrate what division on the 40 fishers would you recommend.
mos eisley cantina is the only tavern in a small remote planet. demand at moss is qd 880 - 200p while the daily total
Explain why do economists attempting to forecast short run future changes in real GDP and employment look closely at information on business inventories and unfilled orders?
Assume the forex market equilibrium is given by i = ((i/E) - 1) + .1, where the two foreign return terms on the right are expected depreciation and the foreign interest rate. What is expected exchange rate? Solve for the IS curve: obtain an expres..
You are the holder of a variable-coupon bond that is convertible to a fixed-coupon bond. If you expect interest rates to rise, should you exercise your conversion option? Explain. What if you expect interest rates to fall?
What about labour markets Is there any difference between labour and commodities that would make the theory a better representation in one case than the other. Do you feel that theory works for commodities markets in general.
In a few weeks Professor Smith will be taking his daughter Attilla to the State Fair. Calculate the Marginal Rate of Substitution (MRS).
Determine elasticities for every single variable in the equation (ignore the constant). Interpret your answers (say what the elasticity means). What would be the effect of a $5,000 increase in the competitor's advertising expenditure?
Illustrate is the point cross elasticity among steel and aluminum. Are steel and aluminum substitutes or complements
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