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Market Forces of Demand and Supply
a) Does the market demand curve different from an individual demand curve? Does the market demand curve always slope downward to the right? If your answer is yes, discuss. If your answer is no, discuss.
b) Is there a difference between a movement along a demand curve and the shift of the demand curve? If yes, explain. If no, explain.
c) Do you believe that managers are always interested in the concept of consumer surplus? Discuss.
What is the dollar value of the deadweight loss when output level Q2 is being produced? What is the total surplus when output level Q2 is being produced?
Explain how do real GDP and the cost level change if the forecast of inflation turns out to be incorrect.
Using the supply and demand analysis of the market for reserves, indicate what happen to the federal funds rate under the following situations: The Treasury has just paid a large bill to defense contractors and as a result its deposits with the Fed f..
Suppose the recent recession led to a drop in wages such that the price of labor fell by 25 percent.Economists predict that this drop will be sustained in the long run. Furthermore, the user cost ofcapital has not changed, nor is it predicted to. How..
Consider the simplified national income model: Determine the equilibrium level of national income (Y) and consumption (C) by using the matrix (linear) algebra only. Determine the overall change (comparative statics analysis) of the equilibrium level ..
Which of the following are sources of lags in monetary policy?
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.
Suppose a major US manufacturer is forecasting demand for its products during the next year. How will the forecast affected each of the following?
Consumer and investor optimism and pessimism matter a great deal in the economy. Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country. If policymakers do nothing, what will happen to aggregate deman..
Assume a perfectly competitive firm is currently producing 5,000 units of output and is earning $15,000 in total revenue. The corresponding average total cost is $3.50 and total fixed costs equal $1250. Based on this information, should this firm con..
q1. you have an opportunity to invest in a new plant. the fixed costs are 100000 per year. the marginal cost of
The electricians' union is a good example of:
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