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The demand for comic books is given by P = 90 - Qd. Supply of comic books is given by P = 2Qs. Suppose that the government imposed a price floor of $70 in this market. What will be the minimum size of deadweight loss?
Your company is interested in analyzing the behavior of interest rates and the models used to predict interest rates in the future. As an initial project in this area, you have been assigned the task of creating a presentation that will show the top ..
Illustrate what or considerations may be taken into account in order to make a decision on implementation of policy.
What is the difference between contractionary and expansionary monetary policy? What is the difference between contractionary and expansionary fiscal policy? How does each policy affect the AD in the economy? What are the benefits and major problems ..
How can fiscal policy create jobs? Discuss Can the government make things worse by intervening in markets? Are there other options outside the markets and government that will fix macroeconomic failure? Discuss
Assume an American company sells $10 million in goods to a German firm. The American company will receive less than $10 million in revenues if (assume no transactions to prevent exchange rate risk):
Consider two consumers, John and Maria, each with an quantity of two goods: corn and sugar. a. John has 30 gallons of gasoline (G) and 20 bags of sugar (S); for that basket of goods, his MRS(GS) is 1G/5S. Maria has 30 gallons of gasoline (G) and 50 b..
Fisher's utility function for trout (T) and salmon (S) is given by U = ST, where the MUT = S and MUs = T. Which set of consumption bundles lies on the same indifference curve?
In a particular industry, labor supply is ES = 6w - 4 and labor demand is ED = 52 ? 2w, where E is the level of employment and w is the hourly wage. What is the equilibrium wage and employment if the labor market is competitive? What is the unemploym..
Using the characteristics of the monopoly structure to help you, discuss the arguments for and against monopolies. Explain the moral hazard problem and the adverse selection problem. Describe the difference between them, and discuss instances where t..
Consider the market for carbonated water and suppose that demand is given by D(p) = 100 – 5p There are only two firms producing carbonated water, each with the same constant unit cost c = 2. What are the equilibrium prices and quantities if the firms..
Your firm faces considerable revenue uncertainty because you have to negotiate contracts with several customers. You forecast a 20 percent chance that your revenues will be $200,000, a 30 percent chance that your revenues will be $300,000, and a 50 p..
Recently, there has been a spate of instability throughout the world. The immigration crisis in the EU, and the political instability in parts of the Middle East. Explain intuitively why the NCO curve slopes downward. Begin your explanation, by consi..
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