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Q1. Use the following general linear demand relations:
QD = 100 - 5P + 0.004M - 5 PR, where P is the price of good X, M is income, and PR is the price of a related good, R.
Income is $100,000, the price of the related good is $20, and the supply function is QS = 150 + 5P. What is the equilibrium price?
Q2. What is the effect on the economic well-being of a nation when a tariff is imposed? Consult a newspaper and identify an industry where there currently is a tariff. What is the effect of this tariff on the U.S. economy?
The president of a small industry has been complaining to the controller about raising labor also material costs.
Explain what the tax multiplier is and why it is less than the expenditure multiplier. Explain, in your own words, how an increase in investment spending generates a multiplied effect on GDP.
Compute the short- run and long- run results, explain the changes in the price and in the number of firms.
If amazon.com's revenue increased after it cut the price of books, dvds, and blu-rays what must be true about the price elasticity of demand for ordering these goods online?
Suppose that MC=4q, where MC is marginal cost. The perfectly competitive firm maximizes profits by producing 10 units of out output. At what price does it sell these units.
Assume that the country initially has no restrictions on trade also then imposes an import quota
Ilustrate what is the marginal propensity to consume (MPC).
if people never withdraw cash from banks, what how much money could the banking system potentially create.
Why might a company use an indirect cost discrimination scheme versus direct cost discrimination
Suppose that the inflation rate in Oct is 8.1%, the inflation rate in Nov is 2.6%, and the inflation rate in Dec is 8.9%. The Price Index was 100 in September. What is the value of hte price index in December?
Briefly describe the details of the fictitious business that you created for this assignment. Assess the current environmental scan factors that are relevant to the decision making process.
a farmer has a production function fl where the input is capital l. the cost of this loan is l1i. the farmer also has
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