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The willingness to pay could be good for sellers if they sell in a bid. However, most of the sellers have a set selling price. Hence, if the price of the good is less than what the buyer is willing to pay, it can create a consumer surplus. If it is lower than the set price, it will create a producer surplus. How do you think the taxes and other government related charges play into the buying and selling prices?
Suppose the government spends more on building new infrastructure. Assume that the new infrastructure projects are useful and make the economy more efficient. What is the effect on the long-run level of output and the price level? Concentrate on the ..
Assume that initially the price is $50 in a perfectly competitive market. Company are making zero economic profits.
Explain how high does the stock price have to rise for the option strategy to be more profitable.
1. Why is China still poor in per capita terms despite having the second-largest economy in the world in terms of real GDP? 2. What is the relationship between savings, capital formation, and consumption?
Explain what happens to the position of the nation's short-run Phillips Curve if the following events occur:
During the Great Depression, Tobin"s q A) rose dramatically, as did real interest rates.fell to unprecedentedly low levels.
In the 1st half of the 20th century, AT&T had a near monopoly on local and long distance phone service. The company charged a price for local telephone services.
If the Marginal Revenue is constant (the same) at $10 for all levels of output, how many units of output will a profit-maximizing producer make if the Marginal Cost schedule is as shown?
Arise in U.S. inflation causes many U.S. residents to buy gold, which is a major South African export good, as a hedge against inflation.
A father goes to the pharmacy late at night for cold medicine for his sick child. all medicine have almost the exact ingredients brand names sell for more. Explain, in economic terms this situation to the father.
What is equilibrium Y What are equilibrium consumption, private saving, public saving, and national saving How much does equilibrium income decrease when G is reduced to 200 What is the multiplier for government spending
Assume that demand for oranges is given by the following equations, With quanity measured in oranges a day and price measured in dollars per Orange.
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