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Recent increases in rents have caused the citizens of Elmville to vote for a rent ceiling of $1200. Assuming all rental units in Elmville are identical and the supply and demand for rental units are given byQs = -1000 + 20PQd = 50000 - 10PWhat will be the excess demand for apartments once the price ceiling is implemented?
What is Q if the price level is 120? Suppose that Q in your answer is the full-employment level of output. By how much will Q increase in the short-run if the price level unexpectedly rises from 120 to 132.
Suppose that an auto company owned entirely by german citizens opens a new factory in south carolina. What sort of foreign investment would this represent Would the effect pm the U.S. GDP be larger or smaller
you can invest in a project with returns that depend on the amount of your investment. Specifically, the formula relating next year's payoff to your investment today is C1=(-C0 -0.1)^(1/2), c1 c2 are in million dollars.
Consider that the U.S. supply of ethanol follows the function S(p) = 5p, and that the US demand for ethanol is D(p) = 13.5 - 2.5p. Without any government role, there are in equilibrium 9 Billion gallons/year transacted at a price of $1.80/gallon.
oprah just inherited a house with a market value of 150,000 and she does not expect the market value to change. Each year, will pay 300 for utilities and 2000 in taxes. She can earn 4 percent on money in a bank account. Her cost of living in the h..
Suppose that a new government is elected that wants to keep out the poor. It declares that the minimum rent that can be charged is $2500 per month. If the government can enforce that price floor, will there be a surplus or a shortage Of how many u..
Compute the discount factor 1/(1+r)^t for r=1, 5, or 10 perent interest rates and t=30 and 50 years. remember that 1 percent is .01. based on your computation, is teh choice of discount factor important for deciding whether to do somehtinga bout..
Roger believes the colors chosen by customers who special-order their cars best reflect most customers' true color preferences. He has taken a random sample of 40 special orders for Mustang coupes placed in the past year. The new color options are..
There is also a slim chance the legislature will provide the full funding and bonds don't need to be sold, a 5% chance. There is also a 1% chance that a donor will come forward and put their name on the building and pay 10% of the cost. What is th..
It has been hypothesized that overall success for college freshmen as measured by grade point average (GPA) is a function of IQ scores (X1), hours spent studying each week (X2), and one's high school average (X3). Suppose the regression equation i..
After this change, the interest rate is found to be below the equilibrium interest rate. Describe the effect of this level of interest rate on the price of bonds, the need for cash balances, the opportunity cost for holding money.
Suppose the velocity is constant and the economy's output of goods and services rises by 5% each year. What will happen to nominal GDP and the price level next year if the FED keeps the money supply constant.
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