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Suppose that there is a credit market imperfection because of limited commitment. As in the setup with collateralized wealth, each consumer has a component of wealth which has valu
THERE IS PRESSURE ON THE CENTRAL BANK TO INCREASE MONEY SUPPLY WHAT WOULD BE THE EFFECT ON THE MACROECONOMIC VARIABLE
price falls and demand is elstic
Suppose that demand is downward sloping and supply upward sloping. Subsidies cause dead weight loss despite the fact that: 1)consumer surplus increases. 2)total surplus increases
#q The price of a laptop increases by 20% and there is a 40% drop in the quantity demanded. • The price of a pack of cigarettes increases by 10% and there is a 5% drop in the quan
limitation of kaldor hicks in compensation test and welfare criteria
prove that the utility approach and the indifference curve approach yield the same consumer equilibrium
what is pooling equilibrium
explain how scarcity impacts choice 2.expain the three steps process in economic analysis
types of market competitions
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