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Q1. Laura bought word -processing software in 2005 for$50. Laura's twin brother, Laurence, buys an upgrade of the same software in 2006 for $50 what problem in the construction of the CPI dose this situation best represent.
Q2. The market demand and supply function for VCR movie rentals are: QD= 10 - 0.04p and QS 3.8P = 4. Calculate the equilibrium quantity and price and point elasticity of demand in equilibrium. Next, calculate producer surplus. Suppose that VCR movie rentals are taxed at $ 0.25 per unit. Calculate the revenues generated by the tax. Calculate the loss in producer surplus. What percentage of the burden of the tax falls on producers?
Suppose that in response to a foreign crisis, the government increases defense spending by $50 billion. How would the increase in defense affect the economy? How would the effects differ depending on the size and sign of the output gap when the cr..
Write a four to five (4-5) page paper in which you: 1.Describe the business and explain the general pattern of change of the particular market model indicating how this change is likely to impact business operations. 2.Hypothesize the basic short-run..
Define and explain the money multiplier. Identify the change to the money supply in the following situation: The required reserve ratio is 12.5 percent and the Fed increases the monetary base by $100.
Compute the MRS of other goods for airline miles; i.e., the MRS that represents the slope of the indifference curves when x1 is on the horizontal and x2 is on the vertical axis.
write an explanation of the short-run effect including the determinant of ad or as that is causing the shift the line
The interest earned is deposited back into the savings account at the end of each month. How much is this account worth after 38 years?
Determine the possible circumstances under which the company should discontinue operations.Suggest key actions that management should take in order to confront these circumstances.Provide a rationale for your response.
Elucidate the common kinked-demand model. In the oligopolist's marginal-revenue curve, elucidate the reason for gap. In this model explain how does price rigidity in oligopoly.
Calculate scale elasticity at the mean of the data; In order to reduce unit cost would you recommend an increase or a decrease in total production? Why?
If a country's currency's external value is tied or pegged to the currency values of the country's leading trading partners, this arrangement
Find equilibrium Y in the basic Keynesian model (round Y to the nearest whole number) What are the values of BS and NX at the equilibrium level of Y? Find the value of savings at equilibrium Y.
The manager of a canned food processing plant is trying to decide between two labelingmachines. Determine which should be selected on the basis of rate of return with a MARR of 20%per year.
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