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Consider an air basin with only two consumer, Huck and Matilda. Suppose Huck's demand for air quality is given by q_h=1-p where p is Huck's marginal willingness to pay for air quality. Similarly, Matilda's demand is given by q_m=2-2p. Air quality can be supplied according to q = p where p is the marginal cost of supply.
a) Graph the aggregate demand for air quality along with individual demands.
b)What is the efficient amount of air quality?
What are the advantages of Fed increasing interest rates if the GDP gap is positive?
Elucidate the economic cost of most international trade less than the economic benefit of that trade for both the companies and countries.
The table listed below demonstrate the quantities of product X that a producer can produce in one growing season on a 1 acre farm using different amounts of labor.
A paper detailing explain why the US dollar might be replaced as the nation's reserve currency by the Euro or the IMF's Special Drawing Rights.
At the same time dozens of low price producers started growing plants for sale. The net result was a decline in the average price of houseplants.
The cenima manager observes that the increase in price causes attendance at a given movie to fall from 300 persons to 200 persons.
The year is 2007, and the price elasticity of driving on Dulles Toll Road is 1.6. The owners of Dulles Toll Road raise the cost of a one way trip to $8.50.
Use diagram to describe how each of the following events affects the equilibrium price and quantity of pizza (draw a separate diagram for each event)
Consider a nation with an economic structure consistent with assumption of classical model. Assume that businesses in this country suddenly anticipate higher future profitability from investments they undertake today.
Illustrate and fully explain using an example of relevant cost (a cost whose value does affect the optimal decision) and an example of irrelevant cost (a cost whose value does not affect the optimal decision) to the business regarding this decisio..
Currently, the extent of our economic difficulties has caused the economic policymakers to choose fiscal and monetary policies that are both expansionary.
Explain how did the Mexican peso crisis differ from the Russian ruble crisis. What was the role of the IMF in these two currency crises.
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