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Suppose the market demand for burritos is given by Q d = 40 – 5P and the market supply for burritos is given by Qs = 10P – 20, where P = price (per burrito).
a. Graph the supply and demand schedules for burritos.
b. What is the equilibrium price and equilibrium quantity?
c. Calculate consumer surplus and producer surplus, and identify these on the graph.
Suppose that the price of good X rises and the price of good Y falls in such a way that the consumers new optimal consumption bundle lies on the same indifference curve as his old bundle.
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Suppose that the learning effect coefficient in the production of wrist watches is -0.2. If the average cost of producing the first watch is $100, what will be the average cost of producing the 40th watch?
In the final round of a TV game show, contestants have a chance to increase their current winnings of 1 million dollars to 10 million dollars. If they are wrong, their prize is decreased to $100,000.
Suppose You have been employed by an unprofitable company to determine whether it should shut down its unprofitable operation.
What happens to consumer surplus and what happens to total surplus assuming the government sells the consumer
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Based on their public statements, many policy makers would support government regulation of oil markets in order to compensate for the exhaustibility of oil as a resource. Is this reasonable from an economic stand point.
What is the internal rate of return on this investment? Assume that the cab is paid for at the beginning of the ?rst year, but that the annual cash ?ows happen at the end of the year.
What does the Federal Reserve take into account when establishing general and specific rates of interest? Describe the recent tools the Federal Reserve has used to influence the U.S. economy, and explain their effects. In your opinion, have these mea..
I know that according to Max Weber--religion, economics,or culture are intertwined with each other. Can it be said that Protestantism and urbanization in Western Europe are also intertwined with each other?
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