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Consider the market for lumber (an important input for the construction of housing). For each of the following events, explain the effect on the demand curve for lumber and explain what will happen to the market equilibrium price and quantity in the short run. Make sure to fully explain your answers.
a. The price of bricks (a substitute for lumber) decreases.
b. Consumer incomes decline, and lumber is considered an inferior good.
c. A report is published showing that lumber-built houses are more energy efficient than brick houses.
d. The price of lumber decreases.
In the case of monetary impotence without a horizontal LM curve, a rise in government expenditures
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Calculate the consumption, the investment, the government consumption, and the private savings.
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Construct a 95% confidence interval about the mean age. What's the lower bound and the upper bound and what does the interval imply?
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