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Suppose that the market equilibrium price for a basic medical check-up is $50, in a market in which there is no health insurance. To encourage more people to get a check-up, the local government mandates that the price of a check-up cannot be more than $40. a. Is this a price floor or a price ceiling? b. Draw a graph to illustrate the implementation of the policy. c. What happens to the number of check-ups in the market? Show on your graph. d. What happens to consumer surplus in the market? What happens to producer surplus? Show on your graph.
In Solow model, what would happen to consumption (the difference between output and savings) if: - there is an increase in saving (investment)- there is an increasing in population.
During a recession you would expect the difference between the 6 mo commercial paper rate and the yield on US 6 mo T-bill of the same maturity to: A. Be the same since their maturities are the same B. Increase reflecting the possibility of higher def..
In your paper, write your first-person account of how human interactions in your community have been realized.
The international debt crisis of the 1970s and 1980s arose primarily from
Assume that the market basket is defined as 1 hammer, 1 lawn mower, 1 unit of groceries for the year, and 2 bicycles. a. Compute the cost of the market basket for each year. Calculate the CPI four times. Use 2005 as the base year the first time, then..
as you have worked as a real estate agent for 10 years as well as are earning about 100000 every year with your current
Discuss how supply and demand would be affected under each of the four degrees of competition (pure competition, monopolistic competition, oligopoly, and monopoly). Give specific examples to support your response.
You are the manager of a firm that receives revenues of $60,000 per year from product X and $70,000 per year from product Y. The own price elasticity of demand for product X is -2.5, and the cross-price elasticity of demand between product Y and X is..
Supply curve is given by L = 20w. What equilibrium wage rate and quantity is of labour hired. What is economic rent earned by workers.
Compared to a perfectly competitive market, in a monopoly market
A company deposits $2000 in a bank at the end of every year for 10 years. The company makes no deposits during the subsequent 5 years. If the bank pays 8% interest, how much would be in the account at the end of 15 years?
Prior to 1999, PepsiCo did not have a product that competed directly against Sprite and had to decide whether to introduce such a soft drink. By not introducing a lemon-lime soft drink, PepsiCo would continue to earn
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