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Assume that apples are an inferior good. Draw a perfectly competitive market for apples and a firm selling apples in the long run equilibrium where price is $10 and the firm’s equilibrium quantity is 50. Explain the following situations graphically and in words (Draw and label side-by-side graphs for each).
a. EXPLAIN what happens in the short-run if customer’s incomes increases?
b. EXPLAIN the process by which this market returns to the long-run equilibrium
Which of the subsiquent statements is (are) generally true assuming a mound shaped distribution.
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Do these public goods conform to the law of demand. For which public supplies is demand price elastic.
What is difference between contraction and expansionary monetary policy. What are pros and cons of using expansionary and contraction monetary policy tools under following scenarios.
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