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Draw, label and explain the circular flow of income and expenditure. With reference to the circular flow, explain the concept of an equilibrium level of GDP. In the Keynesian system, what forces operate to restore GDP to its equilibrium value if disequilibrium prevails?
There are two cities, S and N, separated by a large mountain. A firm with its manufacturing plant at the top of the mountain sells its product in both cities. Consumers in S: Ps = 410 - 10Qs Consumers in N: Pn = 110 - 5Qn. How many units should the f..
The aluminum industry faces a private marginal cost curve PMC = 2Q and a market inverse-demand curve of PD = 60 – QD. However, production creates an externality with marginal damages of MD = Q. Find the market equilibrium without any government contr..
Punk-rocker Pete is feeling insecure about his long-term relationship with economist Elaine. At the conclusion of a recent date, he tells Elaine, "I feel that I derive much more utility from this relationship than you." Elaine tells Pete that his cla..
During recession years,
Analyze the effect a $300 price ceiling would have on the market for ten-speed bicycles. Would this be a binding price ceiling?
Draw the complete Malthusian model, identify equilibrium, and label completely and correctly. Suppose that the government initiates a pro-population growth policy. Draw the implications of this policy change on your graph. Identify changes to equilib..
Suppose Mr Masaki operates a newspaper stand in japan. He sells the Japan Times and English newspaper published in Japan, at the same price as all other newspaper stands do. What is the price elasticity of demand for the Japan Times sold by Mr Masaki..
What is the equal-payment series for 10 years that is equivalent to a payment series starting with $15,000 at the end of the first year and decreasing by $3,000 each year over 10 years? Interest is 9% compounded annually.
Describe the benefits of gasoline/diesel powered engines compared to various alternatives. Discuss the costs of gasoline/diesel powered engines compared to the alternative. What are the estimates of the elasticity of the demand for gasoline in the sh..
Is there a relationship between GDP and the business cycle. If so, explicitate relationship exists and how might a business manager use this information to increase their profits.
In the short run, a monopolistically competitive firm is
How can free market features can be introduced to help alleviate unaffordable rental costs through free market operations of supply and demand?
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