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Demonstrate, using supply and demand analysis, the effect on the equilibrium price and quantity of new hybrid automobiles when the following occurs. Using graphs similar to the notes in Week One, describe the change in the equilibrium price and quantity, and explain your answer. Is the equilibrium price higher or lower, or is the change indeterminate? Is the equilibrium quantity higher or lower, or is the change indeterminate?
a. Incomes increase
b. Interest rates decrease
c. The price of batteries used in the production of these vehicles decreases
d. price of gasoline decreases
Describe who bears relatively more of the burden of the tax, producers or consumers and illustrate your answer with a diagram.
Yet medicines with brand names that the man recognizes from TV commercials sell for more than the unadvertised versions. Elucidate in economic terms, this perplexing situation to the father.
Explain the difference among the government purchases multiplier and the net tax multiplier. If the MPC falls, what happens to the tax multiplier.
How will this technological advance impact production and pricing plans. How it will impact BlackSpot's profit.
Joe has $16 to spend on Twinkies and Hohos. Twinkies are prices at $1 and Hohos are priced at $2 per pack.
Explain how it is possible for one of two people in a two-good economy to have an absolute advantage in producing both goods, but trade can still benefit both people.
Elucidate how the central bank manages a nation's monetary system. Outline the stated direction of recent monetary policy in the United States.
Illustrate what would be the pes0-dollar exchange rate be if purchasing-power parity holds. If a monetary expansion caused all prices in Mexico to double.
compute the shares of lemon grass also troll labor in Hogwarts' income.
Compute effects of an appreciation and a depreciation in the exchange rate on the price of its output in that country and the likely effects on the demand for its output.
Explain how much government securities should be purchased/sold if an open market operation is undertaken
Assume that the equilibrium price of DVD players increases and the equilibrium quantity increases. Illustrate which of the following best fits the observed data.
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