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Suppose we have a competitive market for a good with domestic demand and supply given by:
P = 310 - .05QD
P = 30 + .03QS
International supply is given by a constant competitive price of P1 = $90.
Calculate the producer surplus from parts a and b. Are producers better or worse off as a result of international trade? Explain why.
Suppose the domestic government imposes an import tariff equal to $20. What will be the domestic quantity demanded and supplied, and what will be the tariff revenue to the government?
What are those key objectives and what are the key tools the Fed plans to use to achieve those objectives?
What is the hypothesized elasticity of demand for one product/service that is produced by the company (or a product/company you are familiar with)?
Why might the existing firms in a cartelized industry prefer to be regulated by the government? What is the problem with common property resources?
Those who advocate that the Federal Reserve target monetary aggregates usually argue that the Fed should not alter its monetary targets in response to temporary changes in macroeconomic conditions
Find out the equilibrium market price. Find out the profits of the leader and the follower
What might be included in the "total cost" of acquiring and watching movie on DVD? What about the "total cost" of seeing a movie at the multiplex?
Explain why a monopolist will never set a price (and produce the corresponding output) at which the demand is price-inelastic.
Explain how a change in investment can have big impact on GDp causing nationwide slump. Recall that investment is "small' relative to the whole economy.
Suppose the demand curve for a product is given by Q = 300-2P+4I where 'I' is average income measured in thousands of dollars. The supply curve is Q = 3P - 50.
Budweiser, Miller and Coors who together produce 80% of all beer consumed in the US, each spend well over $250 million a year on television advertising campaigns, promoting their beer brands.
In the country of Wiknam, the velocity of money is constant. Real GDP grows by 5 percent per year, the money stock grows by 14 percent per year, and the nominal interest rate is 11 percent. What is the real interest rate?
According to the quantity theory of money, what is the effect of increase in quantity of money?
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