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The monthly market demand curve for calculators among economics students is given by P=100-2Q, where P is the price per calculator in dollars and Q is the number of calculators purchased per month. If the Price is $30, how much revenue will calculator makers get each month? Find the price elasticity of demand for calculators. Find the price/quantity combination that would maximize revenues. Draw the demand curve and indicate which portion of the curve is elastic, and which is inelastic.
For a normal good, the income and substitution effects
Decide whether each scenario would lead to upward or downward pressure on the equilibrium price for each good in bold font.
(Cournot's duopoly game with linear inverse demand and a quadratic cost function) Find the Nash equilibrium of Cournot's game when there are two firms, the inverse demand function is given by P(Q) = a - 2* Q and the cost function of each firm is
Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest. If the inflation rate was 4%, Illustrate what was the real interest rate you paid.
Suppose there is a permanent increase in a country's saving rate. This increase in the saving rate will cause:
Describe each market structure discussed in the course (perfect competition, monopolistic competition, oligopoly, and monopoly) and discuss two of the market characteristics of each market structure.
q. demand can be predicted with experimental data cross-section data or time-series data. in this case cross-section
Assume an industry is a duopoly. Elucidate the best response functions for A and B.
Detail your choices, noting the why's of your choices and also discuss the effects on the stability of employment, inflation, and GDP as a result.
Which of the following tends to make aggregate demand shift right farther than the amount that government expenditures increase?
In a situation of a fixed exchange rate, explain why, in the monetary approach, an excess supply of money leads to a balance-of-payments deficit. Why is the deficit only temporary? How might advocates of the monetary approach explain a long-lasting d..
The National Park Service (NPS) grants a single firm the right to sell food and other goods in Yosemite National Park. In return, the NPS receives a fraction of the firm’s profits. Discuss the trade-offs of this policy. (ie. What are the pros and con..
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