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Assume an economy lasts for 2 periods. In period 1, only 1 agent is born, this agent lives for 2 periods. In period 2, two agents (who only live in period 2) are born. The consumer born in period 1 is willing to pay a max price of $100 per period of TV usage. Each consumer born in period 2 is willing to pay a max of $50 for using a TV in period 2. Suppose that there is only 1 firm producing TVs which are durable goods and which have 0 marginal production costs. Calculate the prices the selling monopoly charges for TV sets in periods 1 and 2.
If the price increases by 10 percent, by how much does the quantity of household (a) natural gas and (b) electricity change in the short run and in the long run?
solve for consumer surplus, producer surplus, government revenue, and total surplus with the tax. solve for the change in consumer surplus, the change in producer surplus, the change in government revenue, and change in total surplus.
Suppose a basket of goods and services has been selected to calculate the CPI.
Why is the burden of a tax to taxpayers greater than the revenue recieved by the government. Why do some economists advocate taxing consumption rather than income.
q.suppose a bank is faced with two types of borrowers - a high risk borrower that should be charged an interest rate of
Define also Elucidate the three important components of organizational architecture responsible for the success or failure of an organizational design
elucidate how the changes in the monetary policy effectiveness lag and the interest-rate multiplier affects how much and how long monetary policymakiers must change interst rates in response to any given demand shock.
Illustrate how increase in human capital affects production function. Blue line (circle symbols) in graph below shows production function.
Illustrate what is maximum amount you would pay for offer of $2,000. Suppose offer was $2,000, but delivery was to be in 2 years instead of 1 year. Illustrate what is maximum amount you would be willing to pay.
her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle, and the price of cheese is $4 per pound.
The government begins providing health care subsidies for all Americans.b. Private investors become less optimistic about the economy.c. All overseas conflicts are ended and American troops return home.
Four years after the $13,500 deposit, half of the accumulated funds is transferred to a fund that pays 8% interest compounded quarterly. How much money will be in each account six years after the transfer?
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