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Assume that we have Ricardian equivalence. This implies that consumption depends on ex- pected lifetime income and that individuals understand the governmentís intertemporal budget restriction.
B) How is private consumption today affected if there is a temporary reduction in govern- ment consumption in the current period? How is aggregate demand affected?
XYZ Corporation faces a horizontal demand curve and the market price is given to be $15. Compute the shutdown price of operations for Corporation XYZ.
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 by Qs = -1000 + 20P
What are "normal" goods? Give an example in our current economy and what are "inferior" goods? Give an example in our current economy.
Assignment on Supply, Demand & Taxes, Supply, Demand, and Taxes, The market for tennis shoes exhibits the following supply and demand schedules:
Some experts have suggested that of the total electricity consumed in the United States, 8 percent is used up by the internet. Thus an increased demand by consumers to surf the internet will the equilibrum price of electricity and the equilibrium ..
Movie theaters often offer decreased rates for children under ten. This suggests that tht demand for adult admission is
Employ an isoquant and isocost diagram and words to show how firms will respond to the decrease in the wage rate. Be sure to identify the short run scale effect and the long run substitution effect.
Determine the maximum number of lbs. of butter the economy can produce and
Identify the differences and similarities of each budget and what accounts for the major sources of revenue for each and how are the revenue amounts expected to change in the future?
If the demand schedule for Bong's book is Q = 2000-100p, the cost of having the book typeset is $9000, and the marginal cost of printing an extra book is $4, then how he would maximize his profits.
Calculate marginal cost and marginal revenue for each level of output when market price and what is the firm's profit-maximizing level of output
Find the comparative statics for an increase in the sales tax, namely y^s/s and p^s/s , and provide an economic interpretation of them. What is the economic interpretation of an increase in the parameter a? You might want to plot the demand functi..
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