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How supply and demand analysis can be extended to illuminated many issues such as low incomes in agriculture and the pattern of taxation by government;
How selfish behaviour in a market system acts like the "invisible hand" of a social planner to allocate society's resources efficiently; and
How the invisible hand fights back when government try to overrule market forces with price controls.
Discuss the difference among inflationary gap also deflationary gap.
Physical capital, Natural resources, Human Capital and Technical Knowledge, should it be Government policy to subsidize the production or acquisition of all or these?
You are a pricing manager at Argyle Inc. - a medium-sized firm that recently introduced a new product into the market. Argyle's only competitor is Baker Company, which is significantly smaller than Argyle.
An economists have estimated the subsiquent transportation elasticities.
Discuss how your answer relates to the income and substitution effects of a price change from Knoxville food prices to Berkeley food prices.
Use the utility function to answer the questions, below: (x1, x2) = exp (√(x 1 ) + √(x 2 )-Derive the Marshallian (ordinary) demand function for good1 and 2, x i *(p,l), i =1,2 . Then derive the indirect utility function (p,l).
The demand and supply curves for gasoline (in billions per year) are given below. Using the equations, find the initial equilibrium price and the quantity in the market for gasoline.
What is the equilibrium level of income? Compute disposable income, consumption and aggregate demand.
Suppose, in a given week, float raises $900 million, Treasury deposits at the Fed rise $1500 million, discounts and advances decline $200 million, and foreign deposits at the Fed increase $150 million.
According to the Solow growth model, a country that increases its rate of capital investment can overcome diminishing marginal returns to capital and achieve sustained high growth over time.
Describe what effect a contractionary fiscal policy would've on the price level and real GDP starting from full employment equilibrium.
As the manager of Pelican Point Financial Group, you are unable to determine whether any given individual is a high or low volume transaction investor. Design a self-selection mechanism that permits you to identify each type of investor.
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