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Q. It can be derived from market supply curve. Graphically, it is equal to area above supply curve and below price. Example: A producer willing to sell a good for $2 but receiving a price of $5 gains a producer surplus of $3. Is it possible to add consumer and producer surplus?
Q. If your holding period is 1 year i.e., you have to sell this bond after one year, what price will you end up selling at? Show your work. (c) What is your effective rate of return in part (b)?
Olivia knows that Popeye likes spinach as much as $3 in terms of money, he likes tobacco $1 in terms of money, and he dislikes potatoes as much as if he had to pay.
Illustrate what money supply should the Bank of Canada set next year if it wants inflation of 10 percent.
As weekend prices skyrocket more people will play golf during the week and eventually the weekend prices will drop and weekday prices. Differentiate among weekday and weekend prices.
The impossible trinity refers to the idea that a country can simultaneously pursue only two of the three following policies: free international-capital flows, monetary policy for domestic stabilization, and a fixed exchange rate.
What must saving rate be in initial steady state. What is marginal product of capital in initial steady state. Suppose that public policy rises saving rate so that economy reaches Golden Rule level of capital.
List all of the possible outcomes under each of the strategies. What is the expected number of delivered (unbroken) eggs under eachstrategy.
Elucidate how would a gradual increase in the percentage of fathers who stay home to care for young children while their wives continue working ultimately alter the male-female wage gap.
Demonstrate provide/demand curves also equilibrium for the USA, assuming no imports.
assume that isoland has a closed economy. Isoland national investment is $50,000,000, its private saving is $60,000,000 and its taxes minus transfer payment equal $65,000,000. Explain how much are islonad's government purchases.
Illustrate the tourism industry in Florida prior to the spill and potential tourists, rightly or wrongly, fear polluted waters and ruined beaches from the spill, show the new lines and equilibrium points after the spill.
Decrease costs across the board. Find out elasticities of the products and increase the price on the inelastic shoes.
Using marketplace equilibrium why do baseball players also CEOs make more money than your lowly Economics instructor.
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