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Consider the market for solar panels. Suppose that technological advancements allow the price of batteries, a compliment to solar panels, to decrease significantly.
1: Draw supply and demand graph showing the initial equilibrium, any supply and/or demand shift, and new equilibrium.
2: What happens to the equilibrium price?
3: What happens to the equilibrium quantity?
Explain difference between nominal and real variables and give two examples of each. According to principle of monetary neutrality, which variables are affected by changes in quantity of money.
A piece of equipment that was purchased two years ago for $59,000 was expected to have a useful life of 5 years with a $5,000 salvage value. Since its performance was less than expected, it was upgraded for $20,000 one year ago. Increased demand now ..
Can you recognize from the graph the period for which Canada was on affixed x-rate regime with the US dollar and the UK pound? What was this period.
What is the profit of each firm in equilibrium (problem 14)? REMEMBER THERE ARE NO COSTS
q. suppose in the short run a perfectly competitive firm has variable cost 3q2 and mc 6q where q is the quantity of
He goes to his pal "Hammerhead" the loan shark who loans him $10,000 for a year. Illustrate what is true effective interest rate per year.
What is the European Union? How do debt problems in Greece and Spain affect the European Union as a whole and its member countries? What are the potential political implications of the austerity measures being currently being proposed in Greece and S..
Workers actively demand pay increases when the price level is rising and are willing to accept pay cuts when the price level is falling, then the short-run aggregate supply curve would be:
a fictional survey shows a decrease in drug use by young people in brooklyn. in the ensuing debate two hypotheses for
Assume that a country produces an output Q of 50 every year. The world interest rate is 10%. Consumption C is 50 every year, and I = G = 0. There is an unexpected drop in output in year 0, so output falls to 39 and is then expected to return to 50 in..
part a1. russian farmers again have a poor crop. their government has announced that they will not ban exports. this
In supply and demand theory, an increase in consumer income for a normal good will:
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