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Market equilibrium happens where supply equals demand (supply curve intersects demand curve). An equilibrium implies that there is no force that will cause further changes in price, as quantity exchanged in the market. This is analogous to a cherry rolling down the side of a glass; the cherry falls because of gravity and rolls past the bottom due to momentum, and continues rolling back and forth past the bottom until all of its' energy is expended and it comes to rest at the bottom - this is equilibrium [a rotten cherry in the bottom of a glass].
1. Suppose that Mr. John has the following Cobb-Douglas utility function U = 6X^2/3y^1/3 the market price of X and Y commodity are $1 and $2, respe
1. Sam Smith owns an internet radio company that has subscribers in Houston and Dallas. The demand functions for the 2 markets are: Q(Houston) = 50-0.35P(Dallas) Q(Dallas) = 80-0.
A " properly mixed strategy " means a mixed strategy that does not assign all the probability to one pure strategy. In other words, it is not a pure strategy. Consider a simultaneo
Much of the supply-side, fiscally conservative economic policies of Margaret Thatcher, Ronald Reagan, and even Mike Harris in Ontario were predicated on the belief that high income
Can marginal cost be constant? If so, does this mean that marginal cost are equal to average variable cost?
How to find quantity supplied given just the price
a) Collect costs, revenue data, or other data from the industry that you deem relevant. Describe how you would modify the data in order to make it relevant to decisions a manager m
Substitution Effect - The substitution effect is change in an item's consumption associated with the change in the price of the item, level of utility held constant. - Wh
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when the demand function is 2Q-24+3P=0,find the marginal revenue when Q=3.
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