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Q1. Elucidate how higher saving leads to a higher standard of living. Illustrate what might deter a policymaker from trying to raise the rate of savings?
Q2. If Jason produces 250 kilograms of food per month, Explain how more liquor must he produce to achieve production efficiency?
Q3. As the owner of a lunch diner, you know that you sell on average 180 lunches daily, for an average price of $8.95. You are considering raising prices so that the average lunch will run $10.95. You know from previous industry analyses that when the average price is $10.95, restaurants sell on average 144 lunches. Assuming that you respond like the industry, should you raise your price? Why or Why not?
Determine the total consumer surplus and the total producer surplus; Label these areas on your Graph.
If you were the angel investor, what is your certainty equivalent for these two projects? Are you risk-averse, risk-neutral, or risk-lover?
Supermarket ends its promotion. What does her budget constraint look like now. What combination of meat and potatoes maximizes her utility.
If collusion is not allowed, what kind of market arrangement do you think is likely to result from competitive interactions among these four firms? Calculate the profits of these firms in either case (a and b).
As weekend prices skyrocket more people will play golf during the week and eventually the weekend prices will drop and weekday prices. Differentiate among weekday and weekend prices.
Suppose that during the past year tv fell from $2000 to $1800 per tv sales increased from 700000 to 800000 tv. calculate elasticity of demand.
Find the subgame perfect equilibria of the variant of the game in which the post-entry competition is a game in which each firm chooses a price, rather than an output.
Demonstrate provide/demand curves also equilibrium for the USA, assuming no imports.
Explain how can multiplier have a -ve effect. What is the relationship among the multiplier as well as the marginal propensities.
Illustrate that the tax be acceptable in spite of the deadweight loss. What tax revenue will be generated.
Illustrate what do the economic indicators suggest about the current economy.
Illustrate what happens to aggregate output and the price level in each case.
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