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The velocity of money is equal to PQ/M. Hence, V = PQ/M. This is related to the equation of exchange and is just a rearrangement of the equation MV = PQ.
a. true
b. false
Illustrate what is the elasticity of demand for the product that is produced by the company.
Rachel earns nothing during her learning period, 600 during her working period, and 300 during her retirement period. She has no initial assets. The real interset rate is 0.25. Rachel is not allowed to borrow by the banks.
Using the aggregate demand and supply model, draw an economy in a boom with equilibrium national income above full employment GDP.
Price benefit analysis of an irrigation project describes the ratio of the discounted current value of benefits to costs is less than one.
Assume there are only two automobile companies, Ford and Chevrolet. Ford believes that Chevrolet will match any value it sets, but Chevrolet too is interested in maximizing profit.
Suppose a new deposit to the US banking system of $1000. Assume that all commercial banks have a target reserve ratio of 10 percent and there is no cash drain.
Answer the following questions on the basis of the monopolist's situation illustrated in the following graph.
You are the manager of a firm that produces and markets a generic type of soft drink in a competitive market. In addition to the large number of generic products in your market, you also compete against major brands suh as Coca-Cola and Pepsi.
Assume a typical customer’s inverse demand function for bottled water at a resort area where one firm owns all the rights to a local spring is given by P = 15 - 3Q.
Illustrate what do these numbers imply for the decision of when to open a shared facility versus two separate facilities.
Howard Bowen is a big cotton farmer. The land and equipment he has a current market value of $4,000,000. Bowen owes his local bank $3,000,000.
In the last decade or so there has been a dramatic expansion of small retail convenience stores (such as Kwik Shops, WaWa, 7-Elevens, Gas ‘N Shops) although their prices are generally
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