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Suppose the following equations represent the demand and supply of a good: Qd = 400- 2P Qs = -50 + P Find the inverse demand-supply equations. Graph both the original and inverse demand-supply equations and highlight their differences (slope, intercept etc.). b. (1.5) Using these equations, calculate the equilibrium price and quantity. Suppose the government provides a subsidy ($10/unit) to the seller. Determine the new equilibrium price and quantity, and the amount of subsidy. Show them on a diagram.
FRED reports that the University Michigan Consumer Sentiment Index was 82.5 in June 2014 and 96.1 in June 2015, the most recent month reported. Explain how this change affects the bond market, the money market, the international exchange market for t..
Elucidate, using diagrams where appropriate, explain how the averege costs of a firm may vary short period and long period.
An individual has an income of $1000 per month with which they buy the composite good with a price of $1 and food with a price of $2/unit of food. Draw the budget constraint for the individual with the composite good on the y-axis and food on the x-a..
if people never withdraw cash from banks, what how much money could the banking system potentially create.
Are you for or against free trade? Are you for or against NAFTA? What is the economic basis for trade? Explain the underlying facts that support free trade and give an example of a good that you purchased recently that is based on resource difference..
An emissions fee is paid to the government, whereas an injurer, who issued and held liable, pays damages directly to the party harmed by an externality. What differences in the behavior of victims might you expect to arise under these two arrange..
Fiscal policy and monetary policy are the tools the government can use to try to influence the financial sector. For example, the government can implement policies, such as tax cuts, to attempt to stimulate a sluggish economy.
Is it appropriate to use an OLS regression on a panel data if it yields statistically better results than a fixed effects model? OLS results provide statistically significant variables and it is an overall better fit model than fixed effects in which..
Suppose that Congress is successful in passing a large tax increase that actually be enacted this year. Using three separate aggregate supply and aggregate demand graphs,
What possible effect does investment in excess capacity by incumbents have in determining the extent to which investments by entrants are sunk?
write an explanation of the short-run effect including the determinant of ad or as that is causing the shift the line
Considering companies operate in their own self interest, should cartels be legal.
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