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Either an increase in demand with the supply curve held constant or a decrease in supply with the demand curve held constant will raise a market's equilibrium price.
Using the national income identity find the value of imports (IM). Illustrate what is the current account balance. Illustrate what is the savings rate.
The FOC and local SOC for the firm's optimization problem can be used to prove the law of supply, meaning exactly: if the firm supplies a positive quantity at the current market price, then at a higher price it will supply a larger quantity.
Seller surplus is _________.
Ronnie operates a lawn-care service. On each day, the cost of mowing the first lawn is $10, the cost of mowing the second Lawn is $12, and the cost of mowing the third lawn is $15.
The United States, Brazil,and Argentina are land rich and efficient farming countries. Which countries have large pools of low cost labor? How do countries with no natural resources manage to manufacture and export large quantities of goods?
calculate the change in welfare compared to the free market outcome (i.e., in the absence of minimum wages). Is this a welfare gain or a loss?
Assume that the Fed decided engages in an open market purchase of $100 million dollars. If the required reserve ratio is 10%, and if banks hold an additional 2% of their assets in bonds, calculate the total change in the money supply.
If thousands of consumers begin buying MP3 players, illustrate what will take place to provide as a result.
Describe whether Indian Consumer goods industry is growing at the cost of future profitability.
What is the point, based on the Equimarginal Rule, which has equal marginal benefit (or the closest) for the two purchases?
Compute the minimum rate of interest, and, therefore, the risk premium, at which you would lend $1000 on the informal market. Suppose you are risk-neutral.
Illustrate what do your results tell you about the relative desirability of perfect competition versus monopoly in the presence of externalities.
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