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Suppose that there are 1,000 one-bedroom apartments in a small town and that this number is fixed. The table gives the quantity demand in the market for one-bedroom apartments.
(a) What is the equilibrium rental for a one-bedroom apartment?
(b) Suppose 200 new one-bedroom apartments are constructed. What happens to the equilibrium rent? (c) Suppose more people move into the town, increasing the demand for one-bedroom apartments by 200 units at each price. What is the new equilibrium price? (Assume the supply remains fixed at 1,200 units.)
A cannery is considering installing an automatic case-sealing machine to replace current hand methods. If they purchase the machine for 3800 in June, at the beginning of the canning season, they will save 400 per month for the 4 months each year.
What is the dollar value of the total surplus (producer surplus plus consumer surplus) when the allocatively efficient output level is being produced How large is the dollar value of the consumer surplus at that output level
Assume that you have been hired as a managing consultant by a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It currently uses 100 workers to produce 6,000 un..
How does that rate compare with the rate at which real GDP fell during the 1990-1991 recession?
Suppose the number of employed people in an economy is 121,166,640. The unemployment rate in this economy is 10.4 percent, or .104, and the labor force participation rate is 72.5 percent, or .725.What is the size of the labor force
This year they reported to the board of directors that there was a material weakness in Nordtek's safeguarding of inventory because the storerooms were unlocked and there were no checks on those who entered or left the premises.
Between October 2004 and 2005, real GDP in the United States increased by 3.6 percent, while nonfarm payroll jobs increased by only 1.4 percent. How is it possible for output to increase without a proportional increase in the number of workers.
Discuss the impact of changes in the size of the 18-24 age group on marketing strategy planning in the United States. What are some specific marketing strategies that result from this change
Two processes can be used for producing a polymer that reduces friction loss in engines. Process T will have a first cost of $750,000, an operating cost of $60,000 per year, and a salvage value of $80,000 after its 2-year life.
Sean Bell invested $10,000 on a blue chip stock five years ago and paid a commission of $90. He sold it today for $14,192.20 and paid the same commission, exactly 5 years and 4 months since the stock was bought. Determine the rate of return on thi..
Assume we have a profitmaximizing firm for which P=17-Q, and TC=5Q=Q^2/2, where P is theprice of output Q, and TC is the total cost of production. 1. Suppose the firm behaved likea perfect competitor in the short-run.
What macroeconomic variables do you think they should look at when conducting monetary policy?
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