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Long-run equilibrium price
If a representative firm with long-run total cost given by TC = 50 + 2q + 2q2 operates in a competitive industry where the market demand is given by QD = 1,500 - 40P, in the long-run equilibrium there will how many firms?
Assume market demand and supply are given. Equilibrium price of X is $100 per unit then producer surplus is.
Illustrate what has occurred to change the demand for, or the supply of, the good or service, and market prices of those products or services.
Suppose that the economy is short of its full-employment (potential) level of GDP, assumed to be $14,000 billion, by $500 billion.
The nation is divided into __12______ Federal Reserve districts, each having a Federal Reserve Bank.
Elucidate the effect of this inflow on the rental price of capital in the United States and on the quantity of capital in use.
Suppose that there is an "inflation scare," that is, suppose market participants increase their expectations of future inflation.
Suppose you're an economic advisor in charge of trying to raise a maximum level of tax revenue for the government. You consider taxing the suppliers in the market for corn, a major agricultural product in the United States.
Economic forecasters predicted that consumption also GDP would increase because of higher refunds on income taxes.
Show the effect of moving to a consumption tax on the loan able funds market if people react favourably to the incentive to save. Choose which curve or curves you believe are affected.
Bridget has limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese.
Illustrate what effect a contractionary fiscal policy have on the price level and real GDP.
What happens to the equilibrium price and quantity in each market? Which product experiences a larger change in quantity? Which product experiences a larger change in price?
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