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1. State the law of demand. Why is price inversely related to quantity demanded?
2. You're given the following individual demand tables for comic books.
a. Determine the market demand table.
b. Graph the individual and market demand curves.
c. If the current market price is $4, what's total market demand? What happens to total market demand if price rises to $8?
d. Say that an advertising campaign increases demand by 50 percent. What will happen to the individual and market demand curves?
Identify the equilibrium point and price level. Illustrate how fiscal policy can create an expansionary gap of $0.5 trillion.
The Santa Barbara Bowl (SBB) holds outdoor music events (M), earning $3 of revenue from each concert and with total costs of cM(M) = M2=8 for M concerts. Ursula is a writer who lives right next to the SBB and who sells her novels on the competitiv..
Answer the questions in part a assuming the reserve ratio is 20 percent. Explain the resulting difference in the lending ability of the commercial banking system.
The Human Relations Department of Electronics, Inc., would like to include a dental plan as part of the benefits package. The question is: How much does a typical employee and his or her family spend per year on dental expenses
If the growth rate of real GDP were to continue at the same rate you have calculated, how many years would it take for real GDP to double Assume the population in 2009 was 100 and 200 in 2010. Calculate real GDP per capita in each of these years.
What are the implications of interest rate changes for bond prices and for debt finance?
In what ways does our trade model require further extension?
By assuming there is no change in the level of the MPC and MPS and planned investment jumps by 200 and is sustained at that higher level, recomputed the table. What is the new equilibrium level of Y Is this consistent with what you compute using t..
What if she can lend and borrow money at a 15 percent rate of interest? Will she choose a different option? Why? b. Suppose musical conservatories raise their tuition so that it now costs Debbie $60,000 to become a concert pianist. What career wil..
suppose in 2010 the cost of a market basket of goods was 2001. in 2012 the cost fo the same amrket basket of goods was
Joe Brown's dairy operates in a perfectly competitive marketplace. Joe's machinery costs $500 per day and is the only fixed input. His variable costs are comprised of the wages paid to the few workers he employs at the dairy.
to construct a p-chart for a manufacturing process 25 samples of size 200 were drawn from the process. the number of
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