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Show graphically how the AS and AD graphs help to determine the equilibrium in the economy and then show how an increase in government expenditure will change the equilibrium in the economy. Do it in two stages. First show how the graph changes with the initial increase in government expenditure and then what happens after the multiplier process works through the economy.
The economies-of-scale curve is a long-run average cost curve, because
Using appropriate demand, marginal revenue and cost curves, show graphs for the following situations. (Be sure to label the axes and curves and use numbers on your graphs to demonstrate that your graphs correctly show the condition specified in the q..
consider the problem of picking a price for an economics textbook. the marginal cost of production is constant at 20
Outline the First and Second Welfare Theorems and their implications for the role of government. How can we use them to analyse the trade-off (if one exists) between efficiency and equity?
What are the most likely reasons why so many U.S. firms offer subsidized private health insurance plans to their employees and the employees’ family members? What are most important advantages and disadvantages (for social efficiency) of having so ma..
A major producer of passenger tires has launched an advertising campaign in which it is trying to market windshield wipers to the public under its brand name, which has been highly successful in the passenger tire market. Perform a SWOT analysis of t..
A competitive firm that is profit maximizing pays a wage. The firm has started marketing its new product.
Suppose that Grinch and Grubb go into the wine business in a small country where wine is difficult to grow. The demand for wine is given by P=$360-0.2Q , where P is the price and Q is the total quantity sold. The industry consists of just the two Cou..
Draw a hypothetical supply curve for long-stem roses on Valentine’s Day. Label your graph completely. The price of a dozen long-stem roses on Valentine’s Day often tops $80, while on any other day the price is closer to $50. Of course, many more rose..
Suppose that the price of product A decreases from $27 to $14 and, as a result, the quantity traded of A increases from 175 to 210, the quantity traded of B increases from 65 to 100 and the quantity traded of product C falls from 505 to 400. What is ..
Felix Jones, a recent engineering graduate, expects a starting salary of $65,000 per year. His future employer has averaged 5% per year in salary increases for the last several years. If inflation is estimated to be 4% per year for the next 3 years, ..
Draw a new supply and demand graph showing what happens in the market for fuel efficient cars if only part c) has occurred. Label both old and new equilibrium P and Q.
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