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Skyscraper City has a subway system, for which a one-way fare is $1.50. There is pressure on the mayor to reduce the fare by one-third, to $1.00. The mayor is dismayed, thinking that this will mean Skyscraper City is losing one-third of its revenue from sales of subway tickets. The mayor’s economic adviser reminds her that she is focusing only on the price effect and ignoring the quantity effect. Explain why the mayor’s estimate of a one-third loss of revenue is likely to be an overestimate.
q1. during a coffee-room debate among several young mbas who had in recent times graduated among all one of the young
Illustrate what fiscal and monetary policies would you recommend in order to close a recessionary gap. Would you recommend what expansionary polices.
How should labour be allocated between x and y to satisfy the demands calculated in part.
At what price of food in terms of manufactures would A and B respectively supply food? Would trade take place between A and B in David Ricardo’s world? How many manufactures could B supply?
Explain how central bank manages a nation's monetary system. Outline stated direction of recent monetary policy in United States.
When banks borrow directly from the Fed, the interest rate on those loans is the. An increase in money growth will cause inflation to increase in. What is the purpose of the Fed's structure?
q1. 1. what might be the goal of a museum? of a firm? what are the basic steps in all types of decision making
Consider a bond market. Show graphically and explain how each of the following changes would affect bond price, quantities traded and yield.
If fixed costs increase to $1200, what will happen to equilibrium price and quantity.
The production function is Q = L^0.25*K^0.25 and the respective unit input prices for L and K are w=4 and r=9. Derive the long-run least cost as a function of Q, and derive the marginal cost and average cost to characterize the shape of the total ..
Suppose Nation A can produce 2 million pounds of sugar per week OR 1 million pounds of rice in a week and Nation B can produce 10 million pounds of sugar per week OR 3 million pounds of rice in a week. If this is a two-good, two nation model
what is the resulting outcome of the game? (b) Suppose now that dierent players obtain dierent shares (adding up to 1) when the majority vote is not passed. What happens in a SPNE then?
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