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What are price floors and price ceilings? How could a business maintain its level of profitability if forced to accept price ceilings? Use a business in your response. For example, a coffee shop could ... Please do not use a coffee shop in your example.
How many workers should the firm hire if the price of the output is $10? Suppose the price of the output falls to $7.50. Illustrate what do you think would be the short-run impact on the firmâ??s production.
Suppose banks keep no excess reserve and no individuals or firms hold on to cash. If someone suddenly discovers $12 million in buried treasure and deposits it in a bank, elucidate what will happen to the money supply if the required reserve is 10 ..
The developing country uses the $100 bank balance to import $100 worth of food from the United States (US).
Compute the aggregate demand curve and aggregate supply curve that would maintain the state of economy in less than full-employment level of real GDP.
An individual likes owning cars is better. In order to own a car, an individual must have a 1:4 ratio of frames to tires.
q.michael likes to eat chips and ice cream. michael purchased 10 units bags of chips at 2 per unit and his marginal
In her speech to the Australia-Israel Chamber of Commerce last year, Julia Gillard contrasted "the problems of Europe" with Australia's "position of strength in the world economy" (Editorial, Feb 2 2012, The Australian).
How much excess reserve does your deposit generate for the bank? What is the maximum amount of new money that can be created in the banking system as a result of this deposit? Show all work.
John buys shoes for $1 a pair and socks for $1 a pair. His annual income is $20. Now suppose the government institutes two new programs: first, it taxes shoes, so that shoes now cost John $2 a pair. Second, it gives John an annual cash gift of $10. ..
You are an efficiency expert hired by a manufacturing firm that uses K and E as inputs. The production function for a competitive firm is Q = K1/2 E1/2. The firm can hire labor at a wage of $15 per hour and rent capital at a rate of $60 per unit. Com..
Calculate the equilibrium buyers' also sellers' price with no sales tax also then with the 20% tax Supposed above.
The widget Industry in Any town is a monopoly, controlled by Widget Corp. Its demand curve for the local market is given.
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