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Suppose the market supply of a good is given by P = 10 + 0.2Q, the market demand is given by P = 60 - 0.5Q, and the market is in equilibrium. If the government imposes a price restriction of P = $20 per unit, then subsequent to this market intervention there will be a:
If the total deposits of the banking system are $400 billion, how much money could these reserves support if the required reserve ratio is 0.20, banks hold no excess reserves.
Decrease will have on the desired proportions of capital and labor used in producing the given level of output at minimum total cost.
q.suppose that there is a unit mass of consumers who are uniformly distributed on the segment01. two firms are located
Illustrate what difference will it make to Sony pricing if clients have now become dissimilar?
What are examples of a perfectly/purely competitive firms that you have recently purchased a product from in the last couple of months? Explain how you relate your answer to the market characteristics.
The price index in the first year is 125, in the second year is 150, and in the third year is 200. What is the inflation rate between the first and second year and between the second and third year?
The equation for the demand curve for hotel rooms in Boston is given by P = 5000-0.48Qd. The supply curve is given by P = 0.02Qs. Prices are nightly rates in dollars.
You decide to open an individual retirement account (IRA) at your local bank that pays 7%/year/year. At the end of each of the next 40 years, you will deposit $7,500 per year into the account (40 total deposits). 3 years after the last deposit, you w..
Suppose that the US government determines that cigarette smoking creates social cost not reflected in the current market price an equilibrium quantity of cigarettes.
Explain the economics behind the individual mandate for health insurance (i.e., adverse selection). Would you expect the poor to prefer individual mandates or employer mandates? Why?
A limit on special-interest contributions to national political campaigns
Suppose that annualized interest rates on 3 month CD’s in the U. S. are .375 % while in the Australia annualized interest rates on 3 month deposits are 1.10%. What must currency traders expect to happen to the exchange rate of the US $ in terms of th..
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