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1. Graph the consumption and savings functions:
C = 100 + 0.6Y and S = -100 + 0.4Y
a) What is the equilibrium level of national income?
b) If autonomous investments of 150 occurred, graph the new C + I function of AD = 250 + 0.6Y.
c) What is the new equilibrium level of national income?
d) What is the value of the investment multiplier?
2. Suppose that in an economy a $40m increase in consumption leads a $200m increase in national income. Calculate the value of this economy's marginal propensity of save. (Show working).
A television station is planning the sale of promotional dvds. It can have dvds manufactured by one of two suppliers. Supplier A will charge the station a set up fees of $1200 plus $2 for each dvds;
Compute total revenues, total expenses, and profits both before and during the strike and Who was better positioned to endure the strike?
A. In 1996, many cows in Great Britain came down with "mad cow disease". As a result, the nations of European union banned the import of British beef.
Describe why alternative efficient allocations may have different total levels, and different distributions, of wealth.
Explain and discuss the differences between private goods, public goods, natural monopolies, and open-access goods.
As an economist you have been tasked to address a meeting of a company on international professional to describe the differences between micoeconomics and maroeconomic and give real world example.
Interpret the components of mathematical equations that explain the linear programming problem for each of the following:
Suppose the firms compete by simultaneously choosing price and fine the best response function of each firm as a function of the other firm's price. Compute the equilibrium price and quantity for each firm.
how do these factors affect the elasticity of demand and what would happen if there was a change in these factors
Calculate the appropriate value to use for income in your analysis. Explain why you choose to use that level of income and what is the dead weight loss associated with monopoly
Cammco Industries operates in a large competitive market. While there are some other comapnies in industry due to the high fixed costs of building plants, rival companies are very aggressive in their pricing strategies.
Greetings Corporation stores, as well as the Wall Décor division, have enjoyed healthy profitability during the past 2-years. Although profit margin on prints is often thin, volume of print sales has been substantial enough to generate 15 percent of ..
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