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If the price of chocolate increases what would happen to the demand and supply curves of chocolate and therefore to the equilibrium price and quantity in the market for chocolate? why?
Think about a product that you have purchased recently (e.g. soda, diapers, takeout meals, milk, shoes, manicure/pedicure, video game, etc.). Explain how the law of demand affected your purchase. Give specific examples of how the determinants of dema..
Illustrate what is equilibrium price of box. Is this long-run equilibrium price. Explain how many firms are in this industry when it is in long-run equilibrium.
Describe each market structure discussed in the course (perfect competition, monopolistic competition, oligopoly, and monopoly) and discuss two of the market characteristics of each market structure.
The marginal cost of a college education is given by the equation MC = ½ Qs + 2, where Qs represents the national student enrolment in millions each year. The demand for a college education is given by the inverse demand function P = -½ Qd + 18. In a..
Does the widget production function exhibit constant, increasing or decreasing returns to scale.
The (steady state) equilibrium value of output per person in the Solow growth model (Chapter 5) is given by y∗ = A¯^3/2(s¯/d¯)^1/2 (1). Why do you think the technological parameter A¯ enters with a deferent exponent in the equations? Or equivalentl..
Suppose that $2700 is set aside each year and invested in a savings account that pays 10% intrest per year, compounded continuously. Determine the accumulated savings in this account at the end of year 24
Calculate the price elasticities of demand in each market and discuss these in relation to the prices to be charged in each market.
A $10,000 mortgage bond that is due in 20 years pays interest of $250 every 6 months. The bond rate is closest to
Chris raises cows and produces cheese and milk because he enjoys:
Compare and contrast two events motivated by incentives, one where the self-interested behavior was good for society and the other where it was bad.
What is a recessionary gap? What are effects of this gap on the price level, real output, and unemployment? Explain
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