Prices are flexible in our economy

Assignment Help Macroeconomics
Reference no: EM131239606

Explain why it is important that prices are flexible in our economy? What are the implications if the government started to control prices for products, how would this influence buying?

Reference no: EM131239606

Questions Cloud

Southwest airlines and united airlines : Suppose two firms, Southwest Airlines and United Airlines, are competing in the commercial airline market in which downstream buyer preferences are identical.
Analyze the impact of the internet and web applications : Explain the major effects that the advancement of technology has provided to businesses in relation to opportunities for more efficiency, collaboration, and distributed resources. Note: Be sure to include how the security landscape has changed.
Explain the likely impact on the forecasts : A company uses an EWMA model for forecasting volatility. It decides to change the parameter λ from 0.95 to 0.85. Explain the likely impact on the forecasts.
Develop key capabilities in one of the two key managing : The aim of this assignment is to allow participants to explore and develop key capabilities in one of the two key managing others capabilities addressed in the course.
Prices are flexible in our economy : Explain why it is important that prices are flexible in our economy? What are the implications if the government started to control prices for products, how would this influence buying?
What does price elasticity of demand equal at this quantity : A firm’s demand function is as follows: Qx = 400 - 5Px + Py - 2Pz + 2I. Assume initial values of Px = 50, Py = 20, Pz = 20, I = 50. Determine the quantity of X that will be sold assuming the initial values. Develop the corresponding Total Revenue and..
Find a lower bound on the possible degrees of the vertices : The goal of this problem is to use Euler's formula to list all possible regular polyhedra. (In this case, regular means that every face has the same number of edges and every vertex has the same degree.)
Budget line consists of all points : True or False? Explain! (a) Monopoly outcome is always inefficient, even if the monopolist cannot price discriminate. (b) The budget line consists of all points that a consumer can afford by spending all her income and among which she is indifferen..
Distinguish between vulnerability threat and control : Suppose a per-subject access control list is used. Deleting an object in such a system is inconvenient because all changes must be made to the control lists of all subjects who did have access to the object. Suggest an alternative, less costly mea..

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd