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The market for grapes is given by the following supply and demand equations: Q = 120 – 15P Q = 20 + 5P a. Identify the demand function and the supply function. b. Compute for the equilibrium P* and Q* (Q*, P*). c. Compute the PED at (Q*,P*) AND the PES at (Q*,P*).
Consider a farmer who can either plant or market/consume his crop. Whatever amount he plants becomes a crop twice the size the following year. For example, if he plants seed from 2 ears of corn, he gets 4 ears of corn at harvest. Assume he starts off..
You are considering purchasing a savings bond that will pay $100 in five years. The market interest rate currently is 3% per year. What should you be willing to pay to purchase this bond today? Suppose the interest rate goes up next year, to 4% per y..
Based on your answer in a and b, how can you reconcile the President's statement with economics? Can you suggest how his statement could be modified to be consistent with teh IS-LM model?
q.the availability of investment capital is critical for a market economy to grow. explain how this investment capital
Decrease in demand is represented by a
Explain how does the price elasticity of demand for corn oil influence the quantity-demanded of corn oil and the Total Revenue earned by sellers of corn oil.
Assume that after the exchange of one permit, the marginal cost of abatement is for the firm that sold the permit for $170 also the marginal cost of the firm
Consider a perfectly competitive market with many homogenous exercise gyms. Exercise gyms have learned that customers tend to use the gym less often than the customer anticipated when she signed up.
Show on a graph the market supply of labour considering the graphs of willingness to work and ability to work? and what happens to the labour supply when the willingness to work and ability to work changes?
Why do governments raise taxes on cigarettes and alcohol to raise government revenues? What changes do you make to your demand for gasoline when the prices start to climb up? Would you want to own a business that sells price-elastic products or price..
q.at a recent board meeting ceo and president got into a heated argument about whether to shut down the firms plant in
Compare the two cases and summarize the effect of collateralization on the other terms of the loan. Does it increase or decrease the welfare of the borrower and the lender.
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