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1. If input prices had increased as firms entered the lithium industry in response to rising demand, what would have been the shape of the long-run supply curve?
2. If the market demand for lithium were to decrease during the 2020s, what would happen to the market clearing price of lithium in the long run?
Illustrate what is the efficient price of water. Illustrate what are the quantities of water allocated to agricultural also industrial use
Suppose you purchase a $5,000 bond that pays 7 percent interest annually and matures in five years. if the inflation rate in recent years has been steady at 3 percent annually, what is the estimated real rate of interest?
In the past, some people believed that the Federal Reserve routinely expanded the money supply during presidential election years in order to stimulate the economy and help the incumbent president. For this question, assume that the Fed increases inf..
Which of the following defines an effect time lag?
Please explain “opportunity cost” and give three examples from your own life. Please include and identify both “explicit” and “implicit” costs in your examples.
Start with your factors of production on page 34 and then briefly describe whether these resources were allocated efficiently. Think about how you can check whether marginal benefit equals marginal cost for each of your household’s activities. Are yo..
Determine which of these statements are normative and which are positive and explain why you place them in the normative or positive category.
Consider an economy that has two banks with the following information: East Bank: $1600 cash $15,000 DD $2200 Deposit in the Fed $1300 US government bonds West Bank: Calculate: The desired excess reserves ratio (for the whole economy), Cash held by ..
Bob and Dexter share a dorm room. Bob is a chain smoker but Dexter does not smoke. There are no laws that forbid smoking in the dorm rooms.
Explain how is the cross elasticity theory used to empirically define economic markets.
Suppose that the total revenue function of a firm is given by TR(q) = 120q - 2q^2, where q is the level of output. Find the level of output q that will maximize the firm’s total revenue. Also, compute the maximum amount of total revenue received by t..
What is the elasticity of its demand with respect to advertising? Now suppose the theater increases the number of its ads to 250. Should the theater increase its price following this ad campaign? Explain.
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