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The supply and demand curves for corn are as follows: QD = 3,750 - 725P QS = 920 + 690P, where Q = millions of bushels and P = price per bushel. a. Calculate the equilibrium price and quantity that would prevail in the free market. b. The government has imposed a $2.50 per bushel support price. How much corn will the government be forced to purchase? c. Calculate the loss in consumer surplus that would occur under the support program.
Discuss the pros and cons of the two “advanced” forms of estimating energy demand. What do they excel at and where are they lacking? How might policy changes be built into the models? Discuss the cost features of renewable energies in the supply elec..
A company is trying to predict the long-run market share of a new men's deodorant. Based on initial marketing studies, they believe that 35% of new purchasers in the market will ultimately try this brand. Calculate the long-run market share that the ..
Illustrate what Do You Think About The Idea That Technological And Medical Advances Would Bring An End To Hunger, Disease, Drudgery, And Unemployment In The United States
If price controls are initiated, we would expect that
If a firm in the industry wishes to increase total sales revenue (ignoring cost considerations), will it raise or lower its selling price? Why? What happens to the demand for beer if the price of soda falls by 2%? Explain your answer. What happens to..
A corporation's marginal tax rate is 34 %. An outlay of $35,000 is being considered for a new asset. Estimated annual receipts are $20,000 and annual disbursements are $9,000. The useful life of the asset is 5 years, and it has no salvage value. Assu..
Economic data is a very broad concept. It can include discrete preference relation data-sets as well as extensive time series data. But it is important that theories are tested against data, and the earlier this happens in the development of an econo..
Elucidate why the return to deficit spending since the turn of the century.
Suppose you have the choice of investing in (A) a zero-coupon bond, which costs $500 today, pays no coupon during its life, compounds semi-annually, and then pays $1,000 after 10 years, or (B) a bond which costs $750 today, pays $25 in interest semi ..
Boris budgets $9 weekly for his morning coffee with milk. He likes it if it is prepared with 4 parts coffee, 1 part milk. (Milk and coffee are perfect complements here). Coffee costs $1/oz, and milk $0.5/oz. Draw his budget constraint and indifferenc..
The wheat industry faces the following demand and supply curves: Qd = 800 - 4P Qs = 100 + 3P 41. Determine the equilibrium price and quantity. Calculate the income of all farmers in the wheat industry at the equilibrium point. Calculate the income of..
Assume that you have two ways to get the money, one way is to have it at present, so PV=10,000, another way is to get it in the future, so FV=11,000. Which one would you like to choose ? Why?
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