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Read Eye on Price Regulation on p. 179 and explain why a mismatch between intention and outcome is inevitable if a price regulation seeks to block the laws of supply and demand.
when I was talking about insurance, when I ask about the maximum this person would pay to buy insurance I said that it would be the risk premium: $4823.1 - Then I derived the utility in this case, with certainty this person has wealth $100,000 + $..
A firm faces the following average revenue (demand) curve P = 120 - 0.02Q where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by C = 60Q + 25,000. Assume that the firm maximizes profits.
What is the marginal propensity to consume(MPC)- the amount of additional consumption expenditure from an additional dollar's personal disposable income?
The Third National Bank has reserves of $20,000 and checkable depositts of $100,000. The reserve ration is 20%. Households deposit $5,000 in currency into the bank that is added to reserves
Which sectors of the economy have been affected by it most and if there is going to be any long-term economic impact resulting from it?
To what degree do you think financial market participants were surprised by the FOMC's announcement? Explain.
You have just purchased a new Ford Taurus for $20,000, but the most you could get for it if you sold it privately is $15,000. Now you learn that Toyota is offering its Camry, which normally sells for $25,000, at a special sale price of $20,000.
A group of enterprising engineering students has developed a process for extracting combustible methane gas from cow manure (don't worry the exhaust is odorless). With a specially adapted internal combustion engine, the students claim that an auto..
(Case Study: Active Versus Passive Presidential Candidates) What were the main differences between candidates Bush and Clinton in the 1992 presidential campaign? Illustrate their ideas using the aggregate supply and demand model.
Suppose that last year, the nominal exchange rate between the Japanese yen and the British pound was ¥225.0 per £1.0, one unit of Japanese output cost ¥2000, and one unit of British output cost £8.0
A movie producer has to decide whether to bid for the film rights of a modestly successful novel. If he bids, he believes there is a 90% chance that he will be successful in obtaining the rights. If the bid is unsuccessful he will have to pay lega..
Now calculate the same elasticities at P = $12.
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