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If the price of chocolate increases what would happen to the demand and supply curves of chocolate and therefore to the equilibrium price and quantity in the market for chocolate? why?
What could the Fed do in 2002-2003 in order to bring the economy back to full-unemployment ? What did the Fed actually do? Explain in detail
Juan’s demand function for ice cream cones is QdJuan = 20−5P at prices below $4, and zero at prices above $4. Emily’s demand function is QdEmily = 6 − 2P at prices below $3, and zero at prices above $3.Graph the market supply curves when there are 50..
Illustrate what happens if the insurance plan reduces the deductible to zero. What happens if the coinsurance rate is increased.
If a monopolist produces clear spring water at zero total cost, its total revenue will be maximized where,
Government data that computes averages, such as the consumer price index, are applicable to everyone.
You are on a business trip from Portugal to the United States for 90 days, and you have a per diem expense account of euro 400 per day, no receipts required. This per diem is advanced to you before the trip (euro 36,000). What ethical dilemma might t..
For each of the cost functions found in part I, find the marginal cost, the average cost function and the average variable cost function.
Someone consumes only coke and pretzles and always consumes 4 pretzels with each cup of coke. 1) What is the cross price elasticity of demand with respect to a change in the price of pretzels? Simplify to a function of price of coke and pretzels 2) W..
A tariff is a tax on imports. Use our model of the excise tax to explain why domestic firms ask their government to " protect" them with a tariff. Consider the winners and losers from the tariff. Why do economists tend to think that tariffs are a bad..
An investor is trying to decide between 2 mutual funds. Mutual fund #1 offers a slightly higher return than mutual fund #2 so the investor decides that he will invest in mutual fund #1 unless the risk of mutual fund #1 is significantly higher than th..
There is an ongoing debate on how the unemployment rate is measured in the economy. Some people argue that the reported (official) unemployment rate actually understates the extent of unemployment in the economy. What are your opinions on official ra..
Which of the following is true about perfect competition?
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