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Q. A muffin stand lets consumers select among a menu of three pricing options:
(a) A monthly subscription fees of $200 also a price every muffin of $4;
(b) A monthly subscription fee of $300 also a price every muffin of $3; or
(c) A monthly subscription fee of $900 also allows for unlimited amount of muffins at no additional cost.
Assume that muffins are incredibly addictive, so consumers have perfectly inelastic demand for them, up to a certain saturation point. In Illustrate what range of muffins every month would that saturation point need to be for a consumer to select pricing option b?
If supply at every price is reduced by five gallons, what will the new equilibrium price be.
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Free zone would happen if the central bank lowered the federal funds rate and buy securities on the open market.
Their banks are holding back credit so it is harder for businesses to invest and for consumers to spend
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