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A central city imposes a rent control law that places a binding ceiling on the rent that can be charged for an apartment. The suburbs of this city do not have aren't control law. What happens to the rental prices in the suburbs and to the equilibrium number of apartments in the total metropolitan area, in the city, and in the suburbs?
After a decade long advertising war, NIK and REB are only two surviving company in the sport shoe market. The yearly demand in this market is given through P=100-0.5q.
Over the past recent months it has been selling its widgets for $100 each and unit sales have averaged 5,000 units per month.
If I told you that GDP was forecast to rise by a bit more than 3% over the next year, what would that mean to you? What should you be asking about the forecast?
Assume you borrow $1 million. According to MM, Illustrate what fraction of the firm's equity will you need to sell to raise the additional $1 you need.
The government provides national dental insurance benefits for all U.S. citizens that cover 100% of the cost of all dental services. There are two effects of this policy. First, there will be an increase in the number of consumers of dental servic..
Compute the 10-year growth rate forecast using the constant growth model with annual compounding, and the constant growth model with continuous compounding for each occupation.
Suppose that Nike and Adidas are the only sellers of athletic footwear in the United States. They are deciding how much to charge for similar shoes. The two choices are "Low" and "High". The payoff (profit as million) 2X2 matrix.
Suppose that the government increases taxes and government purchases by equal amounts. What happens to the interest rate and investment in response to this balanced-budget change Does your answer depend on the marginal propensity to consume
Beasley World Industries has a division that makes air conditioners. They face a three-year deadline to eliminate their current technology due to the chilling technique they use. There is a near-term solution that may be done (1) and a longer-te..
If college education generates a positive externality, show graphically the social loss associated with the private market outcome of college education. Are there any interventions that would be useful to address the externality
Select a nation that has a low per capita income and discuss how the catch-up effect would work for that country. Consider the determinants of productivity and explain some of the things that would tend to prohibit or limit that country's ability ..
Assume that the government increases purchases of goods and services through $20 billion. Using your graph obtained in, draw the new AE line and determine the new equilibrium GDP.
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