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In a competitive market, the demand and supply curves are Q(p) = 12 - p and S(p) = 5p respectively.
1) Consumer surplus in this market equals?
2) Producer Surplus?
3) What percentage of the total surplus is lost if the government imposes a sales tax (ad valorem) of 20% collected from the producer?
Write a 2 page essay describing what life was like in the Great Depression 1929-1941 with a focus on the important events and data which characterized economic conditions of that time period. Cite at least 4 outside sources of supporting information/..
In the same context of Q6 above, briefly explain why the prices of Short Term US treasury securities are still high enough to keep the interest low enough despite the fact that the US Bond rating has been downgraded from AAA status to AA+ by S&P in J..
HI5003 Economics for Business. Cost of production- in any industry in Australia where costs of production are an important issue and analyse what is being done in the industry. May be the industry is switching to technology or/and some substitutes..
Explain how much shelter can she buy if she purchases 2 units of food.
?Which of the following is the path through which contractionary monetary policy works? ?Which of the following types of unemployment is considered to be the most controllable through demand-side macroeconomic policy?
What economic principles are relevant to the Tragedy of the Commons, and how are they relevant? Cite every economic principle you can think of that applies. Also, what factors make it difficult to manage a commons?
Sketch a well labeled graph showing the impact of the tax. On whom does the tax burden fall-the team's, owners, the fans, or both.
You have a manufacturing plant in Brazil. Your labor cost per hour to manufacture a polo shirt is R$5.99 BRL (Brazilian Real). Will your cost of production increase or decrease if the Brazilian Real appreciates (gains value) compared to the US Dollar..
q1. why would the following investment expenditures increase as the interest rate declines?a. purchases of a new plant
A new Fed governor argues during FOMC meetings that the Fed has not sufficiently achieved the goal of helping the economy reach its potential level of output. She asks the committee to be more aggressive, using expansionary monetary policy to increas..
Create two separate graphs that show current changes in equilibrium interest rates using the MD and MS curves. Describe the following: The Fed's actions to fight recession, The Fed's actions to lower inflation, Create two NEW graphs adding AD/AS curv..
Derive the aggregate demand curve and plot it to scale. Show all of your work. Calculate the effect of an increase in government spending on GDP. Is the effect larger or smaller than in the case where consumption does not depend on the interest rate?..
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