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What is the equilibrium quantity of a market with a demand curve P = 10 - Q and a supply curve equalto P = 2 + 2Q? Now suppose a tax imposed on the seller of $2 per unit? Show or illustrate how this taxeffects resource allocation? Speculate regarding what might justify the allocation effect of the tax?
Compares interest rates available for savings accounts at different banks. what is the range of rates currently being offered? what is the best deal? Comparisons between credit cards. briefly explain the factors that are considered in the comparisons..
You have made arrangements to borrow $1,000 now and another $1,000 three years from now (End of Yr 3). The obligation is to be repaid at the end of four years. If the projected interest rates in years one, two, three, and four are 10%, 12%, 12%, and ..
If marginal cost exceeds average total cost in the short run, then which is likely to be true?
The demand for and supply of shekels in the foreign exchange market is Demand = 30000 – 8000 e Supply = 25000 + 12000 e where the nominal exchange rate is expressed as dollars per shekel. What is the fundamental value of the shekel?
Explain the law of supply, and why the supply curve slopes upward? How is the market supply curve derived from the supply curves of individual producers? Identify what are the major determinants of price elasticity of demand?
Reinstituting a draft of military personnel would lower the military's budget. Would it lower the actual cost to the economy of the military? Is the production of other goods and services forgone by people joining the military? Does a draft change th..
You purchase a 1 year T-bill with a $10,000 face value at a price today of $9,756.0975 (a) What is the implied yield to maturity on the 1 year bond? (b) After 1 year, what is the rate of return of the T-bill?
Explain how many units of housing would the government have to increase the provider of housing in order to get the market equilibrium rental cost.
Do you think there are lessons for American capitalism in Europe’s experience? Is it the other way around? Might both have things to learn? Do you think that the general acceptance of the market framework by Europe’s socialist parties signals an end ..
elucidate what will be the effect on the world price of wool. How does the marginal revenue to Australia from an extra unit of wool relate to the price of wool.
For any theoretical linear demand curve:
Some companies, such as Toyota, have many independently owner suppliers. Do you think its relationship with suppliers of tires would be different from that of, say, a supplier of an engine part specifically designed for Toyota?
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