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Q1. Suppose the supply of coal is perfectly inelastic, and the price elasticity of demand for coal is -0.4. If the government imposes a binding price ceiling for coal at a price that is 20 percent below the market equilibrium price, what is the impact of this policy on the market quantity?
Q2. In the article "A Perspective on Inflation Targeting", Ben Bernanke dispute to facilitate the depth of the 1973-75 recessions was reason only in part by amplify in oil prices per sec. Does the aggregate demand-aggregate supply model support Bernanke's thesis?
Suppose a duopoly and let demand be specified by P=A-BQ. In accumulation both firms have same marginal cost c. Interaction between the two firms will be frequent infinite.
Explain what occurs when a new technology makes another one obsolete in terms of economic profit?
The market demand and supply function for VCR movie rentals are: QD= 10 - 0.04p and QS 3.8P = 4. Calculate the equilibrium quantity and price.
In long run, what would you expect to happen to the price of steelin U.S. and Germany. What would be the price differential.
Elucidate the value of a trucker's life disguised by compensating discrepancy among the two firms.
What is a one invention that had good impact on the international economy and why. What were the impacts of this invention were impact good or bad.
Suppose that firm A and firm B can form a joint venture to pursue either or both of their R&D programs.
A Fenway park, home of the Boston Red Sox, seating is limited to 39.000. Hence, the number of tickets issued is fixed at that figure. Seeing a golden opportunity to raise revenue.
Using a wholesale price of $4 per case in each state, calculate the breakeven output quantities for each alternative.
Competition in the market is such that each of the firms independently produces a quantity of output.
Suppose that Missing Link must pay a tax equal to 40% of its gross revenue. What is the optimal number of machines for the company.
The US put a specific tariff of €10 on European widgets. Calculate the new equilibrium quantity and price as well as the new Monopoly's profit.
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