Question regarding the supply and demand analysis

Assignment Help Macroeconomics
Reference no: EM131063706

Question 1: Using supply and demand analysis, explain and illustrate graphically the effect of the following situations.

Population growth surges rapidly;

The prices of resources used in the production of good X increases;

The government is paying a $1 per unit subsidy for each unit of good Y produced.;

The income of consumers of normal good X increases;

The income of consumers of inferior good Y decreases;

Question 2: Explain and illustrate using a diagram why a monopolist would never produce in the inelastic range of the demand curve.

In each of the following cases, state whether the monopolist would increase or decrease output:

Marginal revenue exceeds marginal cost at the output produced;

(ii) Marginal cost exceeds marginal revenue at the output produced.

Reference no: EM131063706

Questions Cloud

What is the new value of the company equity : Buckeye Industries has a bond issue with a face value of $1,000 that is coming due in one year. The value of Buckeye’s assets is currently $1,290. Urban Meyer, the CEO, believes that the assets in the firm will be worth either $860 or $1,380 in a yea..
Write a three to five page paper about wwii : Write a three to five page paper about WWII from separate sources dealing with the operational, organizational and ordinance differences between both sides of your battle and how that affected the outcome.
How these controls will act as a deterrent to fraudulent : Discuss how the Securities and Exchange Commission (SEC) continues to fail to detect fraudulent activities in publically traded companies. Suggest a recommendation for improvement.
The accumulated interest and partial principal : Gene Milton borrowed a sum of $5,000 from his rich uncle Ben. After three years, Gene paid a sum of $4,000 towards the accumulated interest and partial principal. He also paid a sum of $2,500 at the end of five years to pay off the loan. The interest..
Question regarding the supply and demand analysis : Question 1: Using supply and demand analysis, explain and illustrate graphically the effect of the following situations. Population growth surges rapidly; The prices of resources used in the production of good X increases;
Equivalent uniform annual cost of two hydraulic systems : What is the equivalent uniform annual cost of two hydraulic systems with expected 30-year life with the following features? The first hydraulic system requires annual operating, maintenance and repair cost of $1000, and it has a useful life of 15 yea..
What is the conversion premium for this bond : You have been hired to value a new 30-year callable, convertible bond. The bond has a coupon rate of 5.4 percent, payable semiannually, and its face value is $1,000. The conversion price is $62, and the stock currently sells for $49. What is the mini..
Find the difference in sample means : Find the difference in sample means - Find the difference between the sample means of teacher A and teacher B
Insurance model or the medicaid model for its chip : 1) From the first e-Activity, specify whether your state follows the private insurance model or the Medicaid model for its CHIP. Analyze the impact that the choice of model has on the fiscal health of your state. Provide two (2) examples of this i..

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