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Consider the following model of a closed economy (Smallville):
MPC = 0.8 - 0.01Y (marginal propensity to consume)C = MPC x YD (consumption function)YD = (Y - T) (disposable income)I = 500 (investment spending)G = 1,500 (government spending)Y = AD (equilibrium condition)T = 1,200 (taxes - non-income)
What is value of the multiplier?
The initial price of cup of coffee is $1.00 and at that price, 400 cups are demanded. If the price falls to .90, the quanity demanded will increase to 500. a) calcuate the (arc) price elasticity of demand for coffee
A businessman wants to donate the funds to establish a new academic support program for student athletes. He is prepared to donate $10 million today (Feb. 16, 2012), one year hence (Feb. 16, 2013), and two years hence (Feb. 16, 2014) to establish
Refer to Table For a firm operating in a competitive market, the marginal revenue is $0. $7. $14 $21.
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Suppose the daily demand for coffee in Seattle is Q^d = 100,000(3-P)^2 A. What is the elasticity of demand at a price of $2 B. At what price would the total expenditure on coffee be the largest?
An insurance company wants to estimate the mean score on this exam for students who have enrolled in a special study program. They take a sample of 8 students in this program and determine that their scores are: 2, 5, 8, 8, 7, 6, 5, and 7. This sa..
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A monopolist produces according to the following demand curve: p=200 - 4Q. Assume that the firm faces a constant marginal cost and constant average total cost of 60 per unit produced. A.calculate the optimal output that this monopolist should produ..
You have your eyes on a new automobile costing $25,000. You finance $20,000 at 15%/yr/monthover a 5 year period.The loaner then proceeds to add on a 1.25% loan initiation fee of 250$. There is a prepaid loan closeout fee of 250$.
Estimate simple linear regression models for both the raw data and the logs, estimating both the intercept and the slope.
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