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Suppose the following equations represent the demand and supply of a good: Qd = 400- 2P Qs = -50 + P Find the inverse demand-supply equations. Graph both the original and inverse demand-supply equations and highlight their differences (slope, intercept etc.). b. (1.5) Using these equations, calculate the equilibrium price and quantity. Suppose the government provides a subsidy ($10/unit) to the seller. Determine the new equilibrium price and quantity, and the amount of subsidy. Show them on a diagram.
Who's economy are we helping when we send job overseas?" There are so many aspects to this question, not the least of which is that many of the jobs we've sent overseas are low-skilled jobs that American don't want to do or are better done (for vario..
From the e-Activity, assess how business leaders use managerial economics to make business decisions indicating how profits may be impacted.
Demand: P= 50-QD and Supply: P= 25-QS Assume that the government levied a 25% tax on the suppliers of mangoes. Illustrate graphically the different economics effects of the tax.CALCULATE AND COMPUTE THE DEADWEIGHT LOSS AND TAX BURDEN.
Explain how do I draw a production possibilities curve for 2 products in an economy if a natural disaster affects one but not the other.
Using the four scenarios referred to in this chapter, choose periods when each scenario has occured in the U.S. or other countries: higher interest rates, more capital invested, lower interest rates, more capital invested.
Depreciation of the Canadian dollar will tend to:
An increased supply of U.S. dollars on the foreign exchange market, all else equal, will result in an appreciation of the U.S. dollar. Although McDonalds operates in a market structure with many competitors and substitute foods, it often engages in _..
If the price of X drops from $1 to 80 cents, and the quantity rises from 2,000 pounds purchased to 3,000 pounds purchased what can we say about the relationship between total revenue from the sale of X and the value of the price elasticity od demand?..
Explicate why one of them brings positive effects to the economy also the other negative effects.
A firm has two variable factors of production (x, y) with a production function q(x,y) = x^1/3*y^1/3. The price of output is p, the price of factor x is wx, and the price of factor y is wy. - Find the factor demand curves x*, y*, and the optimal cons..
Bavarian Crystal Works designs and produces lead crystal wine decanters for export to international markets. The production manager of Bavarian Crystal Works estimates total and marginal production costs to be. What is the optimal level of production..
Suppose nuclear power plants are banned in the U. S. What are the opportunity costs of this decision?
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