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As you may recall from the readings, money demand rises when the price level rises because people will need more money to make their everyday purchases. For example, if the price index rose from 100 to 140.
Use this increase to calculate how many extra dollars an individual will need to buy the following:
a. Fifteen gallons of gas that initially sold for $1.24 per gallon.
b. An apartment that originally rented for $900 per month.
c. A movie ticket that initially cost $7.
In the 1960's, the San Francisco City Government physically moved several houses from the Hayes Valley/Fillmore district to clear way for other development. What government power was the SF City Government invoking, and please discuss the concept..
Suppose a perfectly competitive firm is producing 300 units of output, P = $10, ATC of 300th unit is $8, marginal cost of 300th unit = $10, and AVC of the 300th unit = $6. Based upon this information, the firm is:
For a given price P =$5, AVC = 3 and FC =20000, what is the DOL if the manufacturer id producing 15000 units. Using the DOL value calculated above what is the profits for a 10% increase and a 10% decrease.
1. you are the manager in a market composed of five firms each of which has a 20 percent market share. in addition each
1. construct the coutrnot profit function. differentiate this function and solve for the reaction functions of firm one
if a country exports agricultural products and imports other kinds of goods but conditions within the country change so
Aura has a utility function given by U(X, Y) = 4X0.5Y0.5. The current prices of X and Y are $25 and $50, respectively. Laura currently has an income of $750 to spend on X and Y.
Which of the following factors would most likely explain why a U.S. company would choose to operate in the U.S. despite much lower wages in Mexico.If a monopolist is earning profits, then price is greater than average total cost.
suppose that the demand curve for apartments near the university is given by p 1000 -q and the supply curve is given by
According to the quantity theory of prices and money, a five percent change in the money supply, holding other variable constant, leads to
describe the circumstances under which a firm chooses a low-cost strategy to attain sustainable competitive advantage.
A fashion firm manufactures outfits using two inputs, design skills (L) and expensive materials (M). The cost of fabrication is small and might be ignored as a first approximation.
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