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The answer to Market demand
Suppose that the market demand for broccoli is given by Q=1000-5P and the market supply of broccoli is given by Q=4P-80 where Q is quantity per year measured in hundreds of bushels an P is price in dollars per hundred bushels.
a. Find the equilibrium price/quantity combinationb. How much in total is spent on broccoli?c. What is consumer surplus in dollars at this equilibrium?d. What is producer surplus in dollars at this equilibrium?e. Graph your results
2. Since the federal government believes a diet with broccoli included is good, it decides to subsidize the price paid by the buyer. The subsidy is $45.
a. Find the new equilibrium price/quantity combination (Remember: Pb=Ps-S).b. What is the total subsidy in dollars?c. How much in total dollars is spent on buyers on broccoli?d. What is the deadweight loss in dollars?e. Graph your results?
Explain International Monetary System
Suppose Bank of Canada (BOC) purchases $100 million worth of government bonds from a chartered bank. Assume BOC imposes 5% legal reserve requirement ratio to the banking system.
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The equivalent uniform yearly cost per machine (years 1-5) at an interest rate of 8% per year is.
Elucidate what the article is about in general which is followed by a paragraph or two explaining how elasticity is implied.
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Explain why are prices generally higher for goods/services in London as opposed to Newcastle, or New York as opposed to San Fran.
Examination of the company for which you are currently working (or a company with which you are familiar). Answer the following questions regarding this company.
Assume the economy is slumping into recession and needs a fiscal policy boost.
Now suppose that Charles Home improvement, when the disposal cost of old water heaters is included, has exactly the same average and marginal cost curves for installing replacement water heaters as does ABC water heater.
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Explain should they stay in business for three months or should they close down right now.
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