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"Because of unusually good growing conditions, the supply of strawberries has substantially increased." This statement indicates that:
the demand for strawberries will necessarily rise
the equilibrium quantity of strawberries will fall
the amount of strawberries that will be available at various prices has increased
the price of strawberries will rise
What would be its (cost-based) markup ratio? Now suppose the demand curve the firm faces is:Q = 3000 - 50 P. Is the firm going to achieve its profit goal? Explain.
During a war the government puts pressure on producers for heavy equipment, supplies, and services, making each more important.
What is the value of the total withdrawal (Savings + Taxes + Imports) when the economy is in equilibrium? Where I don't know the vaule for S (Savings).
Suppose the government decides to increase taxes by $50billion and to increase transfer payments by $50 billion. Illustrate what effect would there be on aggregate demand.
Assume that the market for wheat is perfect competitive, with demand curve P = 5000? 0.01QD and a supply curve P = 1+0.1QS. Each identical wheat producer has a total cost curve given by TC = 1+Q+Q2, which results in marginal cost of M C = 1 + 2Q. A) ..
What is the depreciation charge of an equipment purchased five years ago for $200,000, and a expected life of 10 years if it is depreciated using a MACRS method?
If the demand for gold residue high explain what would happen to the price in excess of time.
Households deposit $5,000 in currency into the bank that is added to reserves. Illustrate what level of excess reserves does the bank now have.
Describe why it is often asserted that exporters suffer when their home currencies appreciate in the real terms against foreign currencies and prosper when their home currencies depreciate in real terms.
Stan Money maker needs 16 gallons of gas to top off his tank. I he drives an extra 8 mile round trip Stan can save an extra $0.05 a gallon. Suppose gas costs $3.10 per gallon and Stan gets 24mpg. Each mile driven gives off CO2 that has an environment..
Using the concept of net present value also opportunity cost, explain when it is rational for an individual to pursue
Which of the following is most likely to happen in the short run?
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