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Suppose that the domestic demand and supply for t-shirts in a small open economy are given by: Q=50-P(demand) and Q=25-2P (Supply) [where q is quantity and P is price]
1.) If the world price is 10, what is the free trade level of imports?
2. The county imposes a quota of 11 units. How much will the domestic price rise?
3) What will the welfare effects be of a quota of 11 units on this country?
4) Suppose that instead this country negotiates a VER of 11 units with its chief foreign supplier. What are the welfare effects of this policy?
Discuss the difference between a movement along and shift of the demand curve? Demonstrate the impact on the equilibrium price and quantity that results from;
Explain how a +0.5% adjustment in domestic interest rates would affect international investment flows. Determine if such a change would have a bigger impact on larger or smaller countries.
The Federal Reserve issued the Federal Open Market Committee (FOMC) statement after its meeting. This information is highly anticipated because it clarifies the stance of monetary policy in the future.
question 1income statement for sizzling foods inc. is shown belownbspnbspnbsp2011nbsprevenuesrevenue from sales of
Explain how you knew the price earnings ratio was attractive and unfavorable.
according to classical economists the aggregate supply curve isa.vertical in both the long run and the short runb.
a department store attempts to gain a competitive advantage by empowering its salespeople in the cosmetics department
List three strategies that can be used by firms to enhance profits in an environment of extreme price competition.
describe the process by which the market for capital and the market for labor reach equilibrium. what happens to each
the forecasting staff for the pizzer corporation has developed a model to predict sales of its air-cushioned ride
what is the concentration ratio for the industry x and y. (number of firm) ----(industry x) ------ (industry y) (1) -----------------------8,750-------- --------1,750 (2) -----------------------7,500---------------- 1,725
Why might a profitable motel shut down in the long run if the land on which it is located becomes extremely valuable due to surrounding economic development What kinds of costs are involved in making a decision to shut down
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