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Determine on any market the effect of the following. Do each separately (on a separate graph) starting from an initial equilibrium position for each one.
1. increase in income
2. Decrease in the cost of production.
3. Increase in the price of a substitute good.
4. Increase in the price of a complementary good.
5. An increase in technology.
6. Increase in taste and preferences for the good.
Consider a model of Cournot competition as studied in class, with 2 firms and a linear inverse demand function P(Q) = a - Q (where Q = q 1 + q 2 is the total quantity produced by
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Sara runs a small business assembling personal computers. This table shows her total cost at different levels of output. Number of computers produced
Explain modern theory of rent eith diagrams and defination
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.measure to control inflation
Assume the economy has a GDP of $11,500 billion. The unemployment rate is at 7.3% and has been slowly rising for the last 6 months. Inflation was at 2.3% one year ago but has sin
Inflation in Sweden Figure Inflation in Sweden 1830 - 2010. Source: SCB. There are four aspects which are interesting when we look at inflation data for Sweden
Why do financial crises occur and why are they so damaging to the economy?
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