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Part One:
Part Two:
Assume that you are an international industry analyst. You have been called to analyze the case of a competitive environment where both local and foreign firms compete. The local demand function has been found to be Qd = 2800-5P and the local supply function has been found to be Qs = 400+3P. Foreign firms are supplying 400 units.
What are the free trade equilibrium conditions (equilibrium price and equilibrium quantity)?
If there were to be an import quota of 200 units, then how would the equilibrium price and quantity change?
How would you say that the quota has affected the consumers and the local producers in this economy?
What are the steps involved in analyzing the changes in the equilibrium of the market. Analyze the effects with an example of events on a market, which includes shift of both the demand curve and supply curve.
Sherry was just rotated out as Microsoft's X-Box sales manager for the Canadian market. In Canada, the X-Box competes with Nintendo's GameCube.
consider an economy in whichc250.75y-t i 100-5r and g t 100.here r denotes the real interest rate prices are sticky
Explain which of the following transactions would be directly counted in 2007's GDP. In each case, explain whether the action causes an increase in Consumption, Investment, Govt. Purchases or Net Export.
two mutually exclusive projects are under consideration.year project a project b0
More demand and supply should be included in your analysis Warning: you are not required to "prove" or show your selection of the determinants of demand and supply. But your discussion and selection must be reasonable.
Identify three methods for solving rational expectations models and using your chosen method, find the rational expectations solution for prices (p) and output (y).
A country has the per-worker production function, y=5k^1/2, where y is the output per worker and k is the capital- labor ratio. The depreciation rate is 0.15 and the population growth rate is 0.05. The saving function s=..
Determine the Government Budget Balance for this economy AND explain whether the Government is in deficit, balance, or surplus.
Explain how does the increase in the after-tax price depend on the price elasticity of demand
Venus Computer can produce 23,000 personal computers a year on its daytime shift. The fixed manufacturing costs per year are $2 million and the total labor cost is $9,109,000.
Assume that an effective price ceiling is imposed by the government at Pc which is less than Pe. Show the ceiling price on your graph and discuss the following:
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