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A local market for claybricks has weekly demand described by P=1.55-.008q and supply described by P=.32+.0012q calculate the equilibrium price.
In response to a prce decrease from 27 to 22 sales qty increases 13200 to 14800 calcuatente absolute value of the price elasticity of demand.
In response to a price increase from 3.75 to 3.99 sales qty decreases 125 to 112. calcualte the aboslute value of th price elastictiy of demand.
Milton Freedman, the champion of the Monetarists School of Economics, basically proved that it was monetary theory, changes in the money supply, that was the only way to affect the economy. Pump priming was false.
What are the prime rate and the federal funds rate? What are the differences between the two: prime rate and federal fund rate?
If the consumption function lies below the 45 degree line dissaving is occuring. If the AE curve lies below the 45 degree line there is a inflation at full employment. Output is increased to get rid of an inflationary gap. The aggregate demand curve ..
Below draw an AD/AS graph and a money market graph side-by-side. For the money market, use an upward sloping money supply curve and assume that the equilibrium interest rate in the money market is 5%. Then explain and show what happens if the Fed act..
Bowen is a manufacturer of golf carts in Minneapolis servicing Minnesota and several nearby states.
An economy adjust on its own to close a recessionary gap because there is
Compute the marginal tax rate as income rises from $100,000 to $200,000. Compute the corresponding marginal tax rates for the regressive and progressive tax systems.
Write expressions for total revenue and marginal revenue as a function of the number of tickets sold and compute the profit-maximizing quantity of tickets.
Movie House is an online seller of DVD's. To buy a DVD from Movie House, a customer must pay a monthly membership fee, plus a price for every DVD bought (this being a two-part tariff pricing scheme). On the graph from Part A. place a horizontal line ..
Suppose that households in the US switched some of their wealth out of their checking accounts and into short term bank CD's. If banks use all excess reserves to support increased lending, what is the effect on this household behavior on the overall ..
Assume that a painter produces 20 paintings this year and 20 paintings next year. What is the annual change in nominal GPD if the price of paintings rises from $1,000 this year to $1,500 next year? Can you conclude that the economy grew from this yea..
Suppose the government subsidizes any business that uses steel in the production process. Also, suppose that a new study proves car exhaust is a major carcinogen. Graph the shift in supply and/or demand. Be sure to label the new equilibrium price and..
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