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Suppose that you have two people in an economy, Ms. Hundley and Mr. McKenna, who want to produce a public good S. Suppose we calculate the Lindahl equilibrium using the method in your textbook. In this case, the demand curve for Ms. Hundley is S=P1/2. The demand curve for Mr. McKenna is S=8/P. If the marginal social cost of the project is 10, what is the Lindahl equilibrium quantity of S? What are the Lindahl prices?
Decide whether each of following statements is true or false. Then explain why your answer is correct, based on Slutsky decomposition into income and substitution effect.
demand for a good of an industry is given by the equation pq=100, where p is the price and q is quantity and supply is given by the equation 20+3p=q. find out the equation price and quantity
The demand for Dunkin Donuts glazed doughnuts will change by Illustrate what percentage also in Illustrate what direction.
Assume that equilibrium real GDP is 800 billion, potential gdp is 900 billion, the mpc is .80, and the mpi is .40 . What is the size of the GDP gap.
If the price of one good is four time the price of the other also the price of both double, Illustrate what effect does it have on the set of affordable bundles
Illustrate what can you infer about the expected changew in the exchange rate between the Canadian dollare and the U.S. dollar.
Illustrate what effect would this have on her dress price in the short run, assuming she is following the rules of profit maximizes.
Illustrate at what price can the firm sell the level of output found in the previous question.
Illustrate what is the underlying factor which seems to help clarify whether or not the economy is self-adjusting.
determine either the demand for student employees by the restaurant would increase, decrease, or remain unchanged.
Illustrate what does a contraction Gap imply about the actual rate of unemployment relative to the natural rate
If a tax were to be imposed on one of these items, for which item would the tax be the most efficient.
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