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Explain economic fluctuations and how shifts in either aggregate demand or aggregate supply can cause booms and recessions using the model of aggregate demand and aggregate supply?
What are the equilibrium quantity and price? How much consumer surplus exists in this market? If a $2 excise tax is levied on this good, what will happen to the equiilibruim price and quantity? What will the consumer surplus be after the tax?
If a bank Keeps no excess resrve and no individual firms hold on to cash. If suddenly someone discovers $12M , in buried treasure.
kywalker Farms supplies water to the town of Mos Eisley (they are \the water company", i.e. a monopoly supplier). Given their infrastructure of pipes, treatment centers, etc, the marginal cost of supplying one gallon of water is only $.50 (and is..
Between your answers to parts b and c, which prices/capacity are best applied from a social welfare perspective? Why?
Soft Selling occurs when a buyer is skeptical of the quality or usefulness of a product or service. For example suppose you're trying to sell a company a new accounting system that will reduce costs by 10%. Instead of asking for a price you offer ..
Each person would pay taxes equal to 10 percent of the value of his or her car. Would the tax be proportional, progressive or, regressive What assumptions do you make in answering this question Do you think the tax that was imposed either efficien..
Discuss the possibility of trade d factor endowments are identical and taste is different - explain the difference between the price and the physical definition of factor abundance - Discuss the possibility of trade if factor endowments are identical..
How much should thismonopolist produce in total and how much will each plant be producing at the profit maximizing level of output?
In an article about the financial problems of the USA today, Newsweek reported that the paper was losing about $20 million a year.
Draw a diagram showing the current situation of the firm. In addition to the above information, suppose the price of the output is $13/unit, if the firm wants to maximize its profit, what should it do? Explain in detail with the aid of a diagram.
Explain how do you balance human suffering with the economic realities.
The economy of a country called Econoland is described by the following desired aggregate expenditure components (all figures in billions of $). For the purposes of this question, the first set of equations will be referred to as fiscal policy1.
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