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Suppose that the residents of Koliner spend all of their income on banana, apple, and oranges. In 2008, they buy 100 bunches of banana for $200, 50 of apple for $75, and 500 oranges for $50. In 2009, they buy 75 bunches of banana for $225, 80 of apple for $120, and 500 oranges for $100. a. Calculate the price of each fruits in each year. b. Using 2008 as the base year, calculate the CPI for each year. c. What is the inflation rate in 2009?
How can two countries both be better off as a result of trade? How can tariffs protect U.S. jobs? Do tariffs lead to a net increase in jobs? Explain. Who are the winners and losers from trade restrictions? Given that trade restrictions impose loss..
A central city imposes a rent control law that places a binding ceiling on the rent that can be charged for an apartment. The suburbs of this city do not have aren't control law. What happens to the rental prices in the suburbs and to the equilibr..
)Now suppose that some of President's close political advisers are urging him to adjust taxes but not spending. Assuming the same initial level of G (=500), how would you advise the administration to adjust taxes to reach potential GDP?
Use the model of supply and demand to explain how a fall in the price of frozen yogurt would affect the price of ice cream and the quantity of ice cream sold. In your explanation, identify the exogenous and endogenous variable.
Firms like Papa John's, Domino's, and Pizza Hut sell pizza and other products which are differentiated in nature. While numerous pizza chains exist in most locations, the differentiated nature of such firms products permits them to charge prices a..
Cypress River Landscape Supply is a larege wholesale supplier of landscaping materials in Gerogia. Cypress River's sales vary seasonally; sales tend to be higher in the spring months than in other months.
You are currently charging $1 per bag of popcorn, spending $200 in advertising, charging $1 for a soda pop, and per capita income is $12,000. a. Compute the elasticity coefficients for price, advertising, income, and cross-price. b. You are curren..
1. consider two countries a and b. labour is the only factor of production for goods x and y.consider the following
derive an expression for the aggregate expenditure curve and graph it on your exam sheet labeling this initial
If banks desire to increase their lending, but the Federal Reserve is not adding reserves to the banking system, what will happen to the level of short term interest rates? Explain your answer carefully.
Why does a prospective monopolistic competitor find it relatively easy to start production in the long run?
What is compound interest? How does it relate to the formula: X dollars today = (1 + i)tX dollars in t years? What is present value? How does it relate to the formula: X/(1 + i)t dollars today = X dollars in t years?
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