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1. The COVID 19 virus has also resulted in a large increase in the price of eggs in several countries. In order to ensure that people can still afford eggs, some governments are contemplating setting a maximum price for eggs. Use demand and supply diagram illustrate and explain the impact of such an action on the market for eggs.
2. Name two public goods that you have used. Explain why these goods have a "free rider" problem.
What is the marginal revenue of a firm that sells a product at the price of $15 and the price elasticity of demand for the product is -2? What is the price elasticity of demand of a firm that sells a product for $20 and marginal revenue is $12?
Given that you are a newly hired government agent and you are speaking to an audience of business people, using economics terms, concepts, and or methods
Suppose you have $2,000 in your E*Trade account. You borrow $1,000 and invest all $3,000 in the Intel stock. Determine your portfolio weight Wintel and Wcash. Suppose you have $2,000 in your E*Trade account. You sell short some Intel shares and recei..
Explain the effect of an increase in exports on the equilibrium GDP in the Keynesian income-expenditure model.
A student loan totals $18,000 a graduation. The interest rate is 6%, and there will be 60 payments beginning 1 month after graduation. If this student received $1,500 as a graduation present and uses it to pay off an extra $1500 in the first month, w..
Determine the demand function and inverse demand function for good X. Graph the demand curve for good X.
In Akerlof’s lemons problem, with symmetric information, suppose that 5 cars are available in equal quantity and with quality levels 0, 1, 2, 3, and 4. Suppose the sellers have a reservation price of $2,000 per unit of quality, and the buyers value c..
Government interventions in housing markets are often justified as corrections of market failures. Using two concrete examples from Hong Kong
How can the root cause of the weakness of health care system in Nigeria be corrected and strengthened to achieve the aim of health care?
Assume that wages and prices are sticky and that we start at a long run equilibrium. Assume that at this initial point, the growth rate of the money supply is 6%, the growth rate of the velocity of money is 5% and that the real economic growth rate i..
Should the government dismiss this citizen's concern as unreasonable? Does your answer change if the market is perfectly competitive? Explain.
A U-shaped average total cost curve implies what?
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