Qq10000-1000p005pop06103awhere q is quantity p is cost

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Reference no: EM13355062

Q1. Q=10,000-1,000P+0.05Pop+0.61+0.3A
where Q is quantity, P is Cost ($) Pop is population, I is disposable income per capita, ($), and A is advertising expenditures ($)

Determine the demand curve faced by CPI in atypical market where P=$5, Pop 1,000,000 persons I=$25,000 and A=$10,000

Q2. Assume the government decides to increase taxes by $50 billion and to increase transfer payments by $50 billion. Illustrate effect would there be on aggregate demand?

Q3. Which of the following would occur if the federal government decided to use a budget surplus to reduce the existing debt?

Reference no: EM13355062

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