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Consider the following changes: a fall in incomes due to a recession: an increased preference for rice consumption: an increase in input prices for rice production; and an improvement in rice production technology. Use diagrams to analyze the effects of these changes on equilibrium price and quantity.
Suppose a frost kills a large portion of an orange crop, with a resulting higher price of oranges. It has been said that such an increase in price benefits no one since it cannot elicit a supply response; the higher price, it is said, simply "line..
What is the value of the money multiplier? What is the value of the nomial money supply? What are the nominal values of deposits, currency and reserves?
What is Bill's opportunity cost of producing one hat, In which of the two activities does Mary have a comparative advantage.
Consolidated Drugs, Inc. has spent $4 million developing and testing a new anti-aging drug. Management now estimates that it will cost $2 million to produce and market this new product.
The supply curve for labor is S L = 100W, where W is the market wage. The marginal revenue product curve for the firm is D L = -50W + 450.
Agree or disagree and describe: In monopolistically competitive market, firms that innovate successfully can increase their economic profits and lock in higher market shares over long run.
What will be the effect of this change in policy on both the real and the nominal interest rate in the long - run?
Compute the coefficient of price-elasticity of supply for the seven prices ranges given above and complete the table.
Suppose that there is an "inflation scare," that is, suppose market participants increase their expectations of future inflation.
Describe the present economic crisis situation in Europe. Why has it been so difficult for the Europeans to find a solution to this problem? Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..
You're the absolute czar and head of union of 1,000 plumbers in Austin, Texas. You've the absolute power to set the wage at which the plumbers will work. You wished to achieve full employment at highest possible wage; (b) you wished to maximize the..
Consider the problem of the book assuming that the utility is Cobb-Douglas (U (C, l) = C α l β )
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