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The following data show the supply and demand schedules for a product. Price per Quantity : 40, 50, 60, 70, 80, 90, 100 demanded Quantity per week(unis): 100, 50, 48, 45, 40, 30, 25 supplied unit per week (units)$ : 15, 20, 25, 30, 40, 46, 50 ] Refer to the above data. The government now introduces a subsidy payment to producers of $30 per unit. Assuming a purely competitive market for the product, the new equilibrium price will be between: A) $40-$50. B) $50-$60. C) $60-$70. D) $70-$80.
An increase in the spread between interest rates on10-year bonds of Italy and Spain and interest rates on 10-year bonds of Germany indicates:
The inflation-free rate (real rate) is 2.3% per year and the inflation rate is 2.03% per year. The effective interest rate (market rate) is therefore
Machine X has an initial cost of dollar 10,000, annual maintenance of dollar 500 per year, and no salvage value at the end of its 4-year useful life. Machine Y costs dollar 20,000. The last year there is no maintenance cost. The second year, maintena..
Compare and contrast economic development strategies based on import substitutions versus export promotion.
How does a negative externality change the supply and demand equilibrium point? Draw the graph with and without the negative externality and explain what happens to the supply ? ( Counpastion externality )
Consider the following sequential game between firm 1 and firm 2. First, firm 1 decides to adopt either technology A or technology B. Firm 2 observes firm 1's decision and then also decides between technology A or technology B. If both adopt technolo..
Traci consumes two goods, lemonade and pretzels. Lemonade costs $2 per glass, and she consumes it to the point where the marginal utility she receives from her last glass of lemonade is 4. Pretzels cost $3 per bag. The relationship between the margin..
Suppose that the government is deciding how wide to make a public road that services one resident named Bob. Bob’s willingness to pay for each metre of road is described by 20 – 2Q. Graph Bob’s willingness to pay (demand) curve. Suppose that the marg..
The total market value of production in an economy must equal total: Participants in our economy include:
Illustrate what is the maximum and minimum subscription price. If the subscription price is set at $48 per share how many shares must be sold and how many rights will it take to buy one share.
Identify whether all the elements of negligence are present and, if so, who or what entity will be sued successfully:
Representative consumers have the utility function U(C,Ls) = log(C) + log(1- Ls). There is perfect competition in the markets (so price and wages are taken as given by firms and consumers) Write down the budget constraint of the representative consum..
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