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Q1. The price of a firm's product increases from $5 to $6. As a result, the quantity demanded of the product declines from 600,000 to 500,000. The price elasticity of demand for the good is equal to
Q2. A Los Angeles firm uses a single input to produce a recreational commodity according to a production function f(x) = 4√x, where x is the number of units of input. The commodity sells for $100 per unit. The input costs $50 per unit.
Find profit maximizing amount of output. Show all working.
Why might variations in the dollar's value in terms of other currencies cause the trade deficit to move independently from the changes in the government budget deficit.
Some economists argue that only unanticipated increases in the money supply can affect real GDP.
Find the equilibrium values of the real interest rate, consumption, investment, and the price level.
Assume that during the last month of the tenth year of ownership, the property in Problem 2 is sold for 1,500,000. Assume also that the seller incurs transaction costs equalling 6 % of the sales price.
What is the function, as well as what are the main ingredients as well as connections within the policy planning network doing off describes.
An individual likes owning cars is better. In order to own a car, an individual must have a 1:4 ratio of frames to tires.
If Rob and Nate are the only people who purchase discs, graph the aggregate demand for discs and write down the equation for this aggregate demand function.
What are the components of aggregate expenditure. What determines the slope of the aggregate expenditure line.
The New York City rent stabilization law of 1969 established maximum rental rates for apartments in New York City
Why do celebrity icons receive such widespread attention and adulation
What is the MRS Is this consumer at an optimum. If not at an optimum should the consumer buy more of the X good or more of the Y good.
Suppose now that the government reduces (t) and increases (t') so that the government budget constraint continues to hold. What will be the effects on an individual con-sumer's consumptionin present
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