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Now suppose world relative demand takes the following form: Demand for apples/demand for bananas = price of bananas/price of apples.
a. Graph the relative demand curve along with the relative supply curve.
b. What is the equilibrium relative price of apples?
c. Describe the pattern of trade.
d. Show that both Home and Foreign gain from trade.
Will revenues increase or decrease in the short and long runs?
Calculate the short run supply curve for a representative firm as a function of price
You are given the data below for 2008 for the imaginary country of Amagre, whose currency is the G. Consumption 350 billion G Transfer payments 100 billion G Investment 100 billion G Government purchases 200 billion G Exports 50 billion G Imports ..
A few years ago, the Boston Globe reported that the city of Boston planned to spend $14 million to convert the FleetCenter sports arena and entertainment center into an appropriate venue for the Democratic Nominating Convention (DNC).
A Honda Accord sells for $28,000 in the United States and for SF35,520 in Switzerland. Given an exchange rate of SF1.25 = $1, how do the car prices of both countries compare
suppose that the money demand is given by md py0.25 ? i suppose that nominal income is 100 and wealth is 500 and that
Compute the total revenue at each price.
Do you see a link between deficits and real interest rates? In what period does the relationship seem clearest? Do your answers change when the ten-year government bond interest rate is used instead of the three-month rate?
aisha and robin consume only food and clothing. figure 1 below depicts the consumption possibilities for these two
A woman is retiring and has 2,000,000 in her ORP account. How long will she be able to withdraw 100,000 per year beginning 1 year from now if the account earns a rate of 4% per year
Vipsana's Gyro House sells gyros. The cost of ingredients (pita, meat, spices, etc.) to make a gyro is $2.00. Vipsana pays her employees $60 per day. She also incurs a rent of $20 per day. Answer questions 17-10 accordingly.
What happens if you estimate the wage regression similar to (10.12) in a world in which the source of disparity in schooling is differences in discount rates across individuals?
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