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Q1. The total operating revenue of a public transportation authority is $100 million while its total operating cost is $120 million. The price of a ride is $1, and the price elasticity of demand for public transportation has been estimated to be -.04. By law, the public transportation authority must take steps to eliminate its operating deficit is asking should the transportation authority increase or decrease the price per ride based upon the price elasticity of demand.
Q2. Suppose that John's MPC is constant at 3/4. If his breakeven point occurs at $7,000 how much will John have to borrow when his income is $3,000?
Describe how each of these activities affects government, households, and businesses. Describe the flow of resources from one entity to another for each activity.
What other variables should be considered when determining what is reasonable in terms of maintenance expense
Now suppose your utility functioin is U= (square root)Wealth. What is the maximum you will pay for the bike check-in now.
If the economy was working at full-employment equilibrium, illustrate the state of equilibrium after the fall in consumer confidence.
She is now considering raising her prices by 20 percent to offset the increase in her monthly rent.
Alex's Furniture Mart produces and sells tables in a perfectly competitive market. When Alex's Furniture Mart produces and sells 250 tables.
Explain how the short-run Phillips curve, the long-run Phillips curve, the short-run aggregate supply curve, the long-run aggregate supply curve, and the natural rate hypothesis are all related.
Shadow Bank 411 buys $3 million more securities in the market and "pays" for them with its account at Bank 411. Bank 411 borrows $3 million more as a first response.
A large school of sharks is reportedly seen by beach-goers at the beaches of Melbourne.
Why might these firms agree to form a cartel. If such a cartel is formed, use the prisoner's dilemma to explain why it may or may not survive.
If at an interest rate of 7 percent, planned investment is $2 trillion, government spending is $3 trillion, net taxes are $2.8 trillion, and household saving is $2.2 trillion, what is the quantity of funds demanded at an interest rate of 7 percent..
What is output that should be produced to achieve economic efficiency and the value to society for correcting the externality.
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