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Consider a two period endowment economy with government. Suppose the government can impose lumpsum taxes and issue public debt. i) De?ne a sequential competitive equilibrium for this economy. ii) De?ne a Arrow Debreu competitive equilibrium for this economy. iii) Find conditions such that the allocations are the same in the Sequential and Arrow Debreu equilibrium. Hint: Find some condition on q0.
q1. a discount store has a special offer on dvd players and lowers their price from 150 to 100. assume the store
Firms operate in a market structure that approaches perfect competition typically are known as "price takers", i.e., the individual firm can only expect to get the price dictated by supply and demand conditions and the decisions of the individual fir..
Illustrate what was the impact on the supply and demand of labor on one sector of the labor market. Explain the factors that affected labor demand and labor supply in the chosen historical example.
supply and demand please respond to the followingfrom the e-activity examine the key factors that influence the supply
In an aggregate expenditure model with no government or foreign sectors, represented by C = a + bY and I (an autonomous amount), an increase in the marginal propensity to save causes the multiplier to rise.
The market demand for glue is Q = 240 û 6P, and the government intends to place a $4 per unit tax on producers. Calculate the deadweight loss of this tax when:
A consumer's bundle increases two normal goods, good X and good Y. According to the income effect, a(n)____ in the price of good X or _______ in the price of good Y will cause the consumer to buy less of good X.
Gaia Research hospital purchased a digital image-processing machine three years ago at a cost of $45,000. The machine had an expected life of eight years at the time of purchase and an expected salvage value of $5,000 at the end of the eight years. D..
During the purchasing decision, evaluation stage, the consumer forms preferences among the brands in the choice set.
Other things equal, if more firms enter a monopolistically competitive industry:
The unintended consequences of raising minimum wage from $8 to $12 per hour will create more unskilled unemployment in the economy. True or False, explain. The unintended consequences of raising minimum wage from $8 to $12 per hour will create more u..
If the prevailing marketplace price is $17 every unit, Elucidate how many units will be produced also sold. Illustrate what are profits every unit.
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