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Use a supply and demand diagram to illustrate effects on equilibrium market price and quantity of firewood used for household heating. Clearly explain any changes depicted in your diagram. State any assumptions you are making as part of the analysis. Use one diagram to describe both: (a) A bushfire destroys large reserves of firewood; and (b) An increase in the price of electricity relative to other forms of household heating.
In the early 1990s, Argentina stopped increasing the money supply and fixed the exchange rate of the Argentine austral at 10,000 to the dollar. It then renamed the Argentine currency the "peso" and cut off four zeros so that one peso equaled one doll..
A forty-year annuity-immediate makes monthly payments. During the first year the monthly payments are $100 each. The payments within each year are level; however, the monthly payments in each of the years two through forty are 4% higher than those in..
According to Keynesian theory when should expansionary fiscal policy be used? How does this change GDP, unemployment and the price level?
Defend the following terms using graphs or equations to illustrate your answers wherever feasible. Portfolio feasible set, efficient portfolio, efficient frontier. Indifference curve, optimal portfolio. Capital Asset Pricing Model (CAPM) Capital Mark..
In the long run, if the demand curve of a monopolistically competitive firm is tangent to its average total cost curve then
Assume that the supply of low-skilled workers is fairly elastic, but the employers’ demand for such workers is fairly inelastic. If the policy goal is to expand employment for low-skilled workers, What if the policy goal is to raise wages for this gr..
The dead weight loss (owing to a price ceiling) increases as demand becomes more ______ and supply becomes more ______.
If a person with utility from income is U = ln Y (where Y is income) and an initial income of $50,000 faces the risk of losing all of her income except a dollar with a likelihood of one percent, what is the most you could charge such a person for ful..
Consider a competitive market in long run equilibrium (all firms are identical with a U-shaped cost structure, there is free entry/exit in the market, and there are no other external price effects). Suppose the government imposes a fixed fee per year..
Gains from trade will result if a country specializes.
Air China is regularly selling out the cargo belly hold capacity on its scheduled Beijing to Los Angeles passenger flights. Air China is considering leasing a Boeing 747-400 freighter (originally a passenger aircraft, but converted to all- cargo) to ..
What were the elements behind the successful acceleration of industrialization after 1865. What were factors that caused ex-slave states in the south lag behind the north in participation in this acceleration of industrialization?
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