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Use the following equations for supply and demand to solve for the market equilibrium price and quantity, and produce a graph for the market. P = 3Qs + 10 P = −2Qd + 30
(a) Suppose that a quota of 2 units is imposed on this market; graphically depict this quota and show its effect. What is the new market price with the quota?
(b) Calculate Consumer Surplus.
(c) Calculate Producer Surplus.
(d) Calculate the Dead Weight Loss in this scenario.
The money multiplier equals 1/R, where R represents the quantity of reserves in the economy. If the money multiplier is 2 and the Fed buys $50,000 worth of bonds, what happens to the money supply? What does the Fed auction at the Term-Auction ..
A manufacturer has been selling 1600 television sets a week at 370 dollars each. A market survey indicates that for each 36 dollars rebate offered to the buyer, the number of sets sold will increase by 60 per week. Find out the demand function.
Suppose that an increase in crime (O) also results in a per unit amount of social damage equal to d(d>0).
q1. analyze the potential downfalls of any effort e.g. free riders and make at least one recommendation for minimizing
A decrease in aggregate demand will cause
How do the five competitive forces in Porter’s model affect the average profitability of the industry? For example, in what way might weak forces increase industry profits, and in what way do strong forces reduce industry profits?
What is the duopoly Cournot equilibrium - that is, the quantities produced by each firm - if the market demand function is q(p) = 1000 minus 1000p, and each firm has a cost of dollar0.28 per unit?
Derive an expression for average cost. Derive an expression for marginal costs. Is there any range of production characterized by scale of economies? At what production level are scale economies exhausted?
A bathtub model of unemployment:
Why is it important to demonstrate concern for communities in which we operate as well as comply with appropriate regulations?
"Price discrimination begins and ends with a firm having market knowledge that its customers/consumers have a willingness to pay different prices." How is this type of information collected and by who? how reliable is it?
Suppose that as the result of the crisis in Greece, the Euro depreciates against the US dollar. Why should you care when the US dollar strengthens relative to other currencies? Describe the ways this could impact your life and that of your friends an..
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