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Assume an inferior good. Suppose there is an increase in income and a decrease in consumer taste for that good. Additionally, consumers expect an increase in the price of this good. Furthermore, the government has increased the regulations for producing this good thus causing a shutdown of numerous firms that produced this good.
Predict what will happen to the equilibrium price and quantity of this good.
The equilibrium real fed funds rate is 2%, the inflation target is 2% and the growth rate of potential output is 3%. If inflation is 8% and output growth is 6%, find the federal funds rate recommended by the Taylor Rule.
What is the nature of oligopolies? What is the nature of monopolies? What is the nature of monopolistic? What is the nature of pure competition?
Suppose the airline industry consists of two firms, A and B. These two firms engage in Cournot competition with each other over a certain route for which inverse demand is P(Q) = 1000 − Q with Q = qA + qB. Solve for the Cournot equilibrium price.
q1. suppose that bargaining as envisioned by the coase theorem can take place and that the homeowners initially hold
Suppose a consumer’s utility function is given by U(X,Y) = X*Y. Also, the consumer has $720 to spend, and the price of X, PX = 9, and the price of Y, PY = 9. How much total utility does the consumer receive? Now suppose PX decreases to 4. What is the..
In which of the following ways is the private market sector similar to the public sector in terms of decision making?
On the other hand, people in developing nations usually degrade also pollute their environments locally also Do not have the similar high level of technology to mitigate these effects.
Proper hygiene such as regular hand washing can greatly limit the spread of many diseases. How may this suggest a role for public interventions? What kinds of interventions may be possible? Suggest three distinct types of possible Intervention.
1 which of the following is not a high energy density source of energya solar energyb nuclear energyc all of the
International trade has many tradeoffs for each country. Overall, what has been the global trend in trade policies from 1950 to 2000?
Which of the following statements are positive and which are normative?
The owner of Tracy’s Diner decided to revamp the entire place over a weekend. The new décor included warm colors, such as red, which are thought to increase hunger, and softer lighting, which is thought to encourage customers to linger over their foo..
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