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Q. Bert, as a consumer, places the value on a pair of jeans as follows. Value of first pair: $45Value of second pair: $33Value of third pair: $30Value of fourth pair: $27Value of fifth pair: $24Value of sixth pair: $21 Value of seventh pair: $18
Ernie, as a producer, pays the following cost to produce jeans. Cost of first pair: $12Cost of second pair: $15Cost of third pair: $18Cost of fourth pair: $21Cost of fifth pair: $24Cost of sixth pair: $27Cost of seventh pair: $30 Using the information given above, answer the following questions.
(1) A demand schedule shows the quantity demanded at each of all possible prices, and a supply schedule shows the quantity supplied at each of all possible prices. Using the information given above, construct a table for a demand schedule and a supply schedule of the jeans, and find the equilibrium price and quantity.
(2) Compute the sizes of the consumer and the producer surpluses at the equilibrium price and quantity derived in (1).
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The ABC Company deposited $100 000 in a bank account on June 15 and withdrew a total of $115 000 exactly one year later. Compute:
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Compute real GDP for 2004 and 2005 using 2004 prices. By what percent did real GDP grow? Compute the value of the price index for GDP for 2005 using 2004 as the base year. By what percent did prices increase?
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