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Use the supply and demand equations below to answer the following questions.
P = 25 - 2 * Qd
P= 3 * Qs
Assume an imposed price of 9. What would happen to consumer and producer surplus if the government did not allow the price to go above 9?
Imagine now that the supply curve shifts right (i.e., down) by 5, What would be the new equilibrium price and quantity? In the most general of terms, what might cause such a shift?
To return to the original equilibrium price, by how much would the demand curve have to shift up or down? Would quantity change and if so by how much? (TRUE or FALSE): Generally, if the demand and supply curves both shift to the right the equilibrium price will decrease and the quantity will increase. EXPLAIN YOUR REASONING.
What is the federal funds rate? Why is it a vital component of macroeconomics? How does the Federal Reserve influence the federal funds rate? Graphically illustrate the impact of an FOMC open market operation that aims to reduce the federal fund
Why as a result of rise in exchange rate, the amount of imports fall but not as much as it does when the supply is perfectly elastic.
Eddie's Precision machine shop is insured for $700,000. The present yearly insurance premium is $1.00 per $100 of coverage. A sprinkler system with an estimated life of 20 years and no salvage value can be installed for $20,000. what is the present w..
Your company has a customer who is shutting down a production line, and it is your responsibility to dispose of the extrusion machine. The company could keep it in inventory for possible future product and estimates that the reservation value is $ 25..
What are the nature and extent of private protective services in the United States today? What role do you think private protective services will play in the future? How can the quality of such services be ensured?
Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one cup of coffee, one donut, and one newspaper. In year one, the basket costs $8.00.
The loss to society resulting from a tax includes the
Illustrate what is the effective rate of protection on the process of turning corn into ethanol.
Evaluate the performance of using the composite index of leading indicators in forecasting the recession in the U.S. (you may need to search additional information for answering this question).
You own a franchise of rental car agencies in Florida. You recently read a report indicating that about 80 percent of all tourists visit Florida during the winter months in any given year, and that 60 percent of all tourists traveling to Florida by a..
A representative of the American clothing industry recently made the following statement: Workers in Asia often work in sweatshop conditions earning only pennies an hour. American workers are more productive and as a result earn higher wages. Is the ..
The first national bank received 3,000 inquiries following the latest advertisement decribing its 30-month IRA accounts in the Boston World, a local newspaper. The most recent as in similar advertising campaign in Massachusetts Business, a regional b..
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