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The market mechanism is the tendency for supply and demand to equilibrate, so that there is neither excess demand nor excess supply. Provide a graphical and written explanation of that statement.
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Consider the following two constrained optimization problems: Problem 1: max/min xy subject to x^2 + y^2 = 50 Problem 2: max/min xy subject to 2-x-2y = 0 i. Using the Lagrange approach find all critical points and the value of the Lagrange multiplier..
If the current price of capital is $10 and the current price of labor is $25, is the firm employing the optimal input bundle for its current output?
q.your local grocery store offers a coupon that reduces the price of milk during the coming week. the regular retail
what amount of additional government spending (without changing taxes) would be needed to reach the desired increase of GDP? what change in total amount of direct taxes (without changing government spending) would be necessary to reach the same incre..
why soft selling can serve as a successful signal of the quality or usefulness of the new accounting system.
Many firms in the United States file for bankruptcy every year, yet they still continue operating. Why would they do this instead of completely shutting down?
Depreciable residential rental real property has been purchased for $70,000 and put into service during the third month of the taxpayer's tax year. For the applicable 27.5 year depresiation life. How many months of depreciation should be generated fo..
Describe what occurs to American imports and exports when the U.S. dollar is strong. Describe what occurs to American imports and exports when the U.S. dollar is weak.
What other economic factors are affected when taxes are raised or lowered, and how are they affected? Should the government increase tax rates on everyone as a way to equalize incomes and wealth?
Using the midpoint method the price elasticity of Demand for a good is computed to be approximately
Ignore the time value of money and compute the optimal pricing scheme of the iphone, Suppose that there are equal numbers of each customer type, and that the MC of the iphone is $100.
q. the gop deflator in econoland is 200 on january 1 2005. the deflator rises to 242 by january 1 2007 and to 266.2 by
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