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If 3000 two-bedroom houses are demanded per year, at a price of $500,000 per unit. However, for every $40,000 increase in the price per unit, the quantity of units demanded falls by 200. Contractors are unwilling to build and sell any two-bedroom houses for any price less than $100,000 but are willing to sell as much as 7700 unit per year at a price of $1 million. If the demand and supply curves are assumed to be linear.
(i) Find the demand curve.
(ii) Find the supply curve.
Consider a small open economy in the short run where the government decreases the tax rate. You own a hat company which sells both domestically and abroad. Therefore your total sales are a function of the exchange rate and total domestic consumption...
1. price discriminationa. indicate the types of price discrimination for the cases below. based on the above examples
John Richards, CEO of Richards Construction builds custom high end garages for car collectors in a booming community in California. Although sales have slowed because of a national recession, it now looks as if the recession is about to end. Suppose ..
Find the Herfindahl index for an industry composed of (a) three firms- one with 70 percent of the market, and the other tow with 20 and 10 percent of the market
Nuclear safety devices installed several years ago have been depreciated from a ?rst cost of $200,000 to zero using MACRS. The devices can be sold on the used equipment market for an estimated $15,000. Use a 5-year study period, an effective tax rate..
After watching the NBC Learn video clip Some U.S. Businesses Profit from a Falling Dollar , consider who benefits and who gets hurt from a falling (depreciating) currency. What factors influence the value in a currency? Use real-world examples to hig..
Technology transfer in the Solow model: One explanation for China’s rapid economic growth during the past several decades is its expansion of policies that encourage “technology transfer.” Draw a graph showing what happens to output in China over tim..
Youngstown sold most of its output in the Midwest. Was this fact relevant.
etween February 2008 and Summer 2009 the Fed supplemented its open market operations with a greatly expanded program of direct lending (both overnight and short term 28 and 84 day loans) to commercial banks, investment banks, brokerage and primary de..
What government policies are available to reduce domestic demand in the medium run. Identify which components of domestic demand each of these policies affect.
Elucidate how much income did this represent for each of the 300 million U.S. citizens. Illustrate what was the largest GDP decline in a postwar U.S. recession.
By showing the behavior of both a monopoly and a dominant firm in the same graph, show that monopoly profits are greater than the profit of a dominant firm in the no-entry equilibrium. Show how much consumers benefit from buying from a dominant firm-..
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