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Q. derive the ordinary demand curve for X and Y assuming that U=XY.Calculate the price and income elaasticities,If Py=1,M=100 derive the compensated demand curve for X and compare its slope with the ordinary demand curve
Q. The public utilities commission in a state lifts price controls on the sale of natural gas to manufacturing plants and allows utilities to charge market price (which are 30 percent higher). Illustrate what conditions would minimize the extent of manufacturing job loss associated with this price increase?
Explain why does it matter which particular mix of price and quantity is selected.
A "run on gasoline" occurs when consumers' fears of gas shortages in the future lead them to demand more gasoline now. Using supply and demand analysis, which of the following is consistent with this situation.
If buyers pay $8 per unit to the intermediary but sellers offer to rebate part of that expense to buyers.
Great post, you gave us a lot of useful information but how do you think that net exports will affect each of the items listed.
Some economists argue that it is possible to raise the standard of living by reducing population growth.
Calculate and interpret the own price, cross price, and income elasticity of demand.
Suppose that velocity is constant at 10, but the nominal money supply increases from $1.1 to $1.21 trillion. Elucidate what must happen to nominal output.
Illustrate the price that consumers are willing and able to pay for this output is $40 per unit. Produces this output, the firm's average total cost is $43 per unit, and its average fixed cost is $8 per unit.
The United States can make certain toys with greater productive efficiency than can the China. Yet we import those toys from China.
Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest. If the inflation rate was 4%, Illustrate what was the real interest rate you paid.
Should GDP take into account environmental issues, distributional issues also health also welfare issues.
Consider what you have learned about the root causes, as identified by leading economic thinkers and policymakers.
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