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The US decision to raise interest rates in the 1970s had ALL of the following results EXCEPT
1. fought inflation back home
2. raised interest rates on variable rate loans held abroad denominated in US$
3. pushed developing countries toward default
4. increased demand for Latin American exports
Discuss the risks of introducing market mechanisms of supply and demand in situations where ethical issues are present.
Suppose demand for a good is QD = 50 - P and supply is QS = -10 + P. How much is the producer surplus? How much is consumer surplus?
If consumers perceive several goods to be homogeneous, they believe the goods to be,
You are considering entry into a market in which there is currently only one producer, the incumbent monopolist. If you enter, the incumbent can take one of two strategies, price low or price high. If they price high, then you expect a $60k profit pe..
Which of the following would cause a change in supply, as opposed to a change in quantity supplied, in the market for used homes? 1. an increase in the number of buyers in the market for used homes 2. An increase in the income of home buyers. 3. A de..
First suppose that there is no tax in the country Randland. A resident, Dagny, has an hourly wage of $50. Now, suppose that a new leader takes over Randland and he implements the following income tax (with respect to daily income for consistency): H..
Hardwood Cutters presents seasoned as well split fireplace logs to consumers in Toledo, Ohio. The low-cost provider company is of firewood in market with fixed costs.
Prior to 1999, PepsiCo did not have a product that competed directly against Sprite and had to decide whether to introduce such a soft drink. By not introducing a lemon-lime soft drink, PepsiCo would continue to earn
Why does government support patent process and why does government not encourages monopoly behaviour.
Show graphically and explain why the imposition of a minimum wage results in both winner and losers in the labor market. On your graph identify the gains to the winners and the losses to the losers.
q. 1. last year president obama proposed a job creation program that included a payroll tax cut? using economic theory
Panel B shows how the demand for X shifts when the price of related good Y increases from $60 to $68. Use the information in Panel B to calculate the cross-price elasticity. Are goods X and Y substitutes or complements?
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