What is an equilibrium price and quantity

Assignment Help Business Economics
Reference no: EM13833288

Price Level AD AS

110 700 600

120 690 640

130 680 680

140 670 720

150 660 740

160 650 760

170 640 770

1) What is an equilibrium price and quantity?

2) Imagine that as a result of a government tax cut, aggregate demand becomes higher by 50 at every price level. Identify the new equilibrium.

3) How will the new equilibrium alter output? How will it alter the price level? What do you think will happen to employment?

Reference no: EM13833288

Questions Cloud

What is the value of consumer surplus : Consider a free market with demand equal to Q = 60-4P and supply equal to Q=2P. What is the value of consumer surplus? What is the value of producer surplus?
Optimal choice between movie and hamburger : Suppose that Ben has $90 to spend on two goods, movie (M) and hamburger (H). The price of a movie is $10 and the price of a hamburger is $2. Ben’s preferences are represented by the utility function: U(M, H) = M *H^2. What is Ben’s optimal choice bet..
A population regression model : 1. Assume that there is a population regression model y = β0 + β1x1 + β2x2 + β3x3 + u and that the model satisfies assumptions MLR1 through MLR5 in the population. Indicate, without explanation, whether the following statements are true or false
Which offer a possible solution to inflation : In a Keynesian framework, using an AD/AS diagram, which of the following government policy choices offer a possible solution to a recession? Which offer a possible solution to inflation?
What is an equilibrium price and quantity : What is an equilibrium price and quantity? Imagine that as a result of a government tax cut, aggregate demand becomes higher by 50 at every price level. Identify the new equilibrium. How will the new equilibrium alter output? How will it alter the pr..
Strategic advantage does kaiser gain from its ehr system : What do you think are the greatest benefits of the HealthConnect system for Kaiser Permanente subscribers. Can you identify any potential risks or ethical issues associated with the use of this system for Kaiser healthcare plan subscribers. How wo..
What is firms optimal output and what is profit or loss : A firm's production function is qi = .2*Ki.2Li.4. The wage rate in this area is w = $15, and the cost of capital is r = .05. a. Find the firm's short run cost function, if Ki is fixed at $100,000. b. If the good is exported around the world at a pric..
Which statement about adverbs is true : Which Statement about adverbs is true
Increase the supply of money at an increasing rate : Suppose the Federal Reserve begins to increase the supply of money at an increasing rate. What impact would that have on GDP, unemployment, and inflation? Would a shift of AD to the right tend to make the equilibrium quantity and price level higher o..

Reviews

inf833288

10/17/2018 12:14:21 AM

This assignment is related to business economics that was really tough for me to complete the assignment although thanks to experts mind which really provided me with an exact solution and it really works... Thank you again !!

Write a Review

Business Economics Questions & Answers

  Explain how computations were correct

there was a month were employment and the unemployment rate rose. Suppose the computations were correct, explain how is it possible for both to have increased.

  Explain how black markets impact economic actives

Explain how “Black Markets” impact economic actives: Please explain in detail and use a supply and demand graph for your examples

  Illustrate what were some of the marginal benefits

Illustrate what were some of the marginal benefits that the city would derive as the result of keeping this project alive.

  Q1 how was de beers able to control the world price of

q1. how was de beers able to control the world price of diamonds over the past several decades even though it produced

  Two brokers at morgan stanley

Two brokers at Morgan Stanley: Bob and Simon are comparing their performance last year. Bob averaged a 19% rate of return on his portfolio, while Simon averaged a 16% rate of return. The beta for Bob’s portfolio is 1.5 while the beta for Simon’s port..

  Explain market models would advertising be used most often

In which market model would there be a unique product for which there are no close substitutes? In which two market models would advertising be used most often?

  Consider an income guarantee program

Consider an income guarantee program with an income guarantee of $6,000 and a benefit reduction rate of 50%.

  Q1 bobs lawn-mowing service is a competitive firm at the

q1. bobs lawn-mowing service is a competitive firm. at the current level of production the firm mows 10 lawns a day.

  What are total revenues and marginal revenues

George, who owns and runs Tots Poses, expects to encounter an average of eight customers per day, each with a reservation price shown in following table. What are total revenues, average revenues and marginal revenues

  You are the ceo of a fortune 500 company

You are the CEO of a Fortune 500 company. You have two objectives: 1. invest $5 million cash on hand short term (overnight to one month); and 2. borrow $100 million for your firm’s working capital needs.

  Main characteristics of a competitive market

What is the relationship between a firm's total revenue, profit, and total cost and define economies of scale and explain why they might arise. Define diseconomies of scale and explain why they might arise.

  Enrich understanding of international economics

How can the issue, perspective, concept or model enhance and enrich understanding of International Economics.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd