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A major step toward mastering the economic way of thinking is learning to reason in terms of supply and demand. I have listed several questions below to answer and practice these concepts.
What effect would you predict on the price of rental housing in an area where several major employers have recently closed down or moved away? Would you expect the effect to be large or small and why?
What effect would you expect an increase in the property tax rate to have on residential rents? Would you expect the effect to be different in the long run from what it is in the short run?
Assume we refused to sell goods to any country that reduced or halted its exports to us.
Show graphically the amount of the change that is due to the substitution effect and the amount of the change that is due to the income effect.
The annual demand for coffee by the U.S consumers is Q = 250 - 10P. Compute the lost consumer surplus?
Difference among the resource market and the producer market in a circular flow model. In what way are businesses and households both sellers and buyers in this model.
Essay on Market imperfection associated with negative externalities.
Illustrate why is strategic interdependence important for the market structure of oligopolies. What happens in the market for oranges if there is a hurricane that destroys the orange crop.
Illustrate what are the benefits and drawbacks of dynamic pricing for that particular company.
India's policies against exchange rates, foreign trade, domestic monetary systems and foreign policy. Also expand into how the political situation in India has effected the country economically.
What is the firm's average variable cost as a function of its output level, y? What is the firm's average total cost as a function of its output level, y? What is the firm's profit maximizing level of output, and what is the resulting profit?
Illustrate what happens if there is an raise in demand that increases the price of the firm's product by 10%.
Utilizing the expectations hypothesis and the Taylor rule provide an interpretation of this comment in the article.
Suppose that in the market for comic book illustrators the substitution effect dominates the income effect While visiting Comic Con.
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