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Q1. Illustrate what are the basic steps in solving for Walras Equilibrium with two consumers and two commodities, given endowments and preferences for both consumers?
Q2. Discuss Explain how international factor movements can be seen as a substitute for international trade. Explain how they might be seen as complements? Explain how might trade barriers (or lack of trade barriers) be related to this question?
Q3. The price of good 1 doubles, the price of good2 becomes 8 times larger and income becomes 4 times larger. Discuss the effects of the changes on the budget line and make clear assumptions.
Illustrate what are the new long-run equilibrium values of these three variables.
American smoke 470 billion cigarettes and the average price per pack was $2. If the price elasticity of demand is -0.4 and price elasticity of supply is 0.5, compute the demand and supply linear equation.
Compute the price and quantity of equilibrium in each country when both country A and country B are closed economies.
illustrates the likely effect on the marketplace for eggs. Indicate in each case the impact on equilibrium cost also equilibrium quantity.
Suppose that classical least squares assumptions apply and the true value of intercept term or is 0 in following model: yi=alpha + beta xi + epsilon i, Now estimate this model with and without an intercept term and compare the variance of the est..
The Solow Growth Model. In 2010, Japan was a large open economy with perfect capital mobility that was at its steady state.
Suppose that there are two products: clothing and soda. Both Brazil and the United States produce each product. Brazil produces 100,000 units of clothing per year and 50,000 cans of soda
Describe the likely economic impact to a company if its bonds are down-rated from AA to A in its annual review from Moody's and S&P. Find the price of a 20 year bond that has a coupon rate of 8%, pays semi-annual interest, and has a $1,000 face amo..
The article touches on two crucial conditions for a fiscal stimulus to work.
From the e-Activity, assess how business leaders use managerial economics to make business decisions indicating how profits may be impacted.
q1. joes search costs are 7 per search. he wants to buy a dvd player for his wife for christmas and the lowest price
A firm has a fixed cost of $200 in its first year of operation. When the firm produces 99 units of output, its total costs are $4,000. The marginal cost of producing the 100th unit of output is $700. What is the total cost of producing 100 units?
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