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Suppose the demand for housing D is given by the function D=100p^-1r^-2 where p is the price of housing and r is the mortgage interest rate. Treat r as exogenous. The supply of housing is given by s=s1 , where S is exogenous. i) Solve for the equilibrium housing price and then by partially differentiating your reduced form, carry out a comparative static analysis with respect to the mortgage interest rate and the housing supply. Explain (in plain English) why your answers make sense and be sure to depict each change that takes place in a simple (two-dimensional) diagram. ii) Suppose the demand for housing is changed from above to a general function D=D(p,r) Dp<0, Dr<0 The supply of housing is still the same. Again, conduct a comparative static analysis with respect to the mortgage interest rate and the housing supply.
identify economic factors that affect the real gdp the unemployment rate the inflation rate and a key interest rate.
hahn company uses the percentage of sales method for recording bad debts expense. for the year cash sales are 300000
you are reviewing your monthly budget and determine you have 60.00 to spend on either books or movies each month.
. Show how the Fed would increase M1 by 1 million dollars by changing the reserve ratio. Show how the Fed would increase M1 by 1 million dollars through open market operation.
Mention five ways you are affected on a daily basis by government intervention in the market. For what reason might government be involved? Is that reason justified?
How many additional watches can be produced by an extra hr of labor? As a profit maximizer what price and output should the firm set? Is production capacity fully utilized? What contribution does this product line provide?
Sunrise Surf Shop is willing to produce 30 surfboards in the month if it can sell each board for $300. If it can receive $500 for each board, the shop is willing to manufacture 70 surfboards.
You're in Management for IBX Steel Components. J. D. Brotsky is a top labor leader and just announced that her union will go on strike against management unless you grant the workers a significant pay raise.
1. a over the years there has been great improvement in farm technology. as a result the american farmer is now more
Integrating Problem From the following figure referring to a natural monopolist, indicate(a) the best level of output, price, and profits per unit and in total for the monopolist,(b) the best level of output and price with a lump sum tax that would ..
Why do you think firm 1's marginal cost is lower than firm 2's marginal cost? Determine the current profits of the the two firms. What would happen to each firm's current profits if firm 1 reduced its price to $6 while firm continued to charge $8?
Explain why you have answered with the policy that you have, and explain why you have chosen that policy over the other two. (a) Which of these policies is most likely to reduce pollution?
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