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Assume that the minimum wage in Illinois is increased. Carefully explain what will happen to the market for McDonald's Quarter Pounders. What do you believe will happen to consumer and producer surplus? Explain. ((Consumer surplus= 1/2(4x5)=10 Producer surplus= 1/2(5x5)=12.5 ))
Use the aggregate expenditure model to explain the following statements from the opening news article.
If the current price of its product is $80 also there is no change in quantity if price is increased, illustrate what must the new price be to achieve the goal.
A Wartburg engineering student has been out of school and working for a few years when they decide to buy a house that costs $233,000. They intend to pay a down payment of 20% and finance the rest at 5.75% per year compounded monthly on a 30-year mor..
Describe in details how the FED bank uses each of the three monetary policy tools, in order to decrease money supply. In your explanation describe who is responsible for setting the monetary tool and how the monetary tool work and how it affects mone..
If a household`s income rises from $46,000 to $46,700 and its consumption spending rises from $35,800 to $36,400, then
q.bob as well as nancy live in a new housing development as well as they would like to have fire hydrants installed to
Willie will receive all his operating expenses, and in addition will receive $2,000 each year for the decline in value of the automobile.
Consider the following market game: An incumbent firm, called firm 3, is already in an industry. Two potential entrants, called firms 1 and 2, can each enter the industry by paying the entry cost of 10. First, firm 1 decides whether to enter or not. ..
Can you offer another reason why the New Jersey dealer might not have wished to follow a no-haggling policy.
Briefly explain regulation in the case of a natural monopoly. Provide 3 common examples of regulation. Briefly discuss the benefits of privatization set out in the text and explain what is required for privatization of a nationalized asset in order t..
Sheryl spends all her leisure time and all her money on sailing. She doesn’t value leisure time if she can’t sail, and she can only sail if she has leisure time. Sailboat rentals cost $10 per hour, and Sheryl earns W per hour. How many hours will she..
Dorinda, Luis, and Elizabeth form a limited partnership. Dorinda is a general partner, and Luis and Elizabeth are limited partners. Consider the separate events below, and discuss fully whether each event constitutes dissolution of the limited partne..
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