Q1 in this same country 8of the capital stock depreciates

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Reference no: EM13351861

Q1. In this same country, 8%of the capital stock depreciates each year. Additionally, the ecnonmy consumes 60% of output.

A)When K=500 is the captial stock growing or shrinking?

B)When K=400 is the captial stock growing or shrinking?

C)Solve for steady-state level of captial and output

D)What savings rate would be necessary to achieve a steady-state output of 150?

Q2. If the inverse demand curve for apples is pd=210-2q and the inverse supply is ps=2+6q, where q is in 100,000s, what is the equilibrium price and quanity? suppose the price of pesticides increases so that the inverse supply curve becomes ps=4+6q, what is the new equilibrium price and quantity? what is the arc price elasticity of demand.

Reference no: EM13351861

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