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In June 2008, the U.S. retail gas price jumped from $3 to $4 a gallon. This is a 33% increase in price from January 2008. During that time, the total quantity of gasoline purchased fell by 3%. Supplies of gasoline produced also decreased from one million barrels to 800,000 barrels.
Calculate the changes in consumer and producer surplus.
What amount of profit is the firm earning? Is this firm in a short-run or long-run equilibrium? Explain
What will happen to price of old car taken as an inferior goods whose substitute is new car if income of the people rises.
A new Taurus bought in 1994 cost $18,680 and it could have been sold as used in 1995 for $12,600.
You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semi-annual interest payment. The bond rate is 6.6% per year payable semi-annually. You plan to hold the bo..
Investors commonly use the standard deviation of the monthly percentage return for a mutual fund as a measure of the risk for the fund; in such cases, a fund that has a larger standard deviation is considered more risky than a fund with a lower stand..
Illustrate what is the (true) value of the marginal product of each black worker. Discuss the employment decision made by firms for which d = 0.2 and d = 0.8 respectively.
What is the deadweight loss if buyers, instead of vendors, are required to pay the tax of $4 for each unit of the good sold.
q.suppose the cfo of an american corporation with surplus cash flow has 90 million to invest and the corporation does
What is the equivalent uniform annual cost of one machine in years 1 through 7 at an interest rate of 7% per year?
In autarky, Jackson produces and consumes 30 units of cattle and 80 units of wheat, while Tahoe produces and consumes 80 units of cattle and 60 units of wheat. Based on this information.
find out generalized least squares estimates of the relevant function(s). Illustrate what is the profit-maximizing level of output suggested by the results in part (f).
Why would we expect that the price elasticity of demand for the product of an individual firm would typically be greater than the price elasticity of demand for the product overall.
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