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A binding price ceiling...
(i) causes a surplus
(ii) causes a shortage
(iii) is set at a price above the equilibrium price.
(iv) is set at a price below the equilibrium price.
a) (ii) only
b) (iv) only
c (i) and (iii) only
d) (ii) and (iv) only
Most macroeconomists believe it is a good thing to taxes act as automatic stabilizers also lower the size of the multiplier.
Even though transport costs could allow for large variance, why is re a large variance. Do we see same sort of variance for prices in markets within a country that are segmented by large distance.
Explain which industries have substantially reduced fixed cost commitments. Reduction in costs has substantially impaired the ability.
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Elucidate how much profit does an individual producer make in a month. Is this a long-run equilibrium.
Illustrate what is the smallest value of x that would be sucient to make Buck want to invest in the pinball palace rather than have a wealth of $24,000 with certainty.
U.S. Higher alcohol taxes, more traffic deaths. Why might re be more traffic deaths in states that have higher alcohol taxes.
Define the equilibrium for this environment. Solve for the equilibrium you defined in part. Perform a cost benefit analysis for the project defined in part.
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Hair Grow Co. has a demand curve of P=101-.00002Q Marginal cost for producing Hair Grow pill is $1. Illustrate what is the profit-maximizing price and quantity. What is the profit.
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