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Problem
1. Total surplus is maximized at the equilibrium price and quantity. When demand increases, price increases. Explain how total surplus is still maximized if price increases due to an increase in demand.
2. When the price of gasoline was very high in the summer of 2008, several U.S. presidential candidates proposed implementing a national price ceiling to keep fuel affordable. How would this policy have affected producer and consumer surplus? How would it have affected total surplus?
as prices increase should health economists advocate giving something up opportunity coststrade-offs?as the quantity of
responses to discussion questions are to reflect critical thought and be at least 250 to 300 words in length.why do
Alice is would like to see DEX's product used by as many people as possible. Which price would she choose? How many units would DEX need to produce and distribute if Alice was in charge?
What price does it pay for the factor?
Suppose that in a year an American worker can produce 100 shirts or 20 computers, while a Chinese worker can produce 100 shirts or 10 computers.a. If the two countries were open to trade, which country would export shirts? Give a specific numerical e..
If the available amount of raw materials and labor are 13,400 pounds and 7,800 h, determine the outputs of A and B.
Find the Cournot solution for the market price and output of mineral water and illustrate with a simple graph and the marginal revenue function facing a monopolist is given by: MR = 200-20Q Demonstrate that firms A and B have an incentive to coopera..
What do we mean by "Scarcity" and how does that relate to the concept of "Opportunity Cost"? Distinguish between macroeconomics" and microeconomics". Distinguish between "Positive economics" and "normative economics".
A risk-averse economic agent with a yearly income off $100,000 inherits a vineyard. In dry years, the vineyard's harvest is worth $100,000.
What is the present value of growth opportunities or P/E ratios the price is at a point in time while the earnings occur over a period of time. It is, therefore, necessary to specify whether the earnings are for the trailing twelve month period (T..
according to moodys obligations rated as aaa are judged to be of the highest quality with minimal credit risk.a. what
Assume that securitization combined with borrowing and irrational exuberance in Hyperville have driven up the value of existing financial securities at a geometric rate, specifically from $4 to $8 to $16 to $32 to $64 to $128 over a six-year time ..
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