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the supply of newspapers is perfectly elastic at a price of $0.75. sketch the supply and demand graph below and calculate the equilibrium number of newspapers demanded by consumers in this market assuming the quantity demanded is given by the function:
Qd=864000-512000P
suppose that a 20 percent tax is imposed on newspapers. show the effect of this tax in your graph (label the new supply line S`) and calculate the excess burden resulting from the tax. calculate the price elasticity of demand coefficient at the initial equilibrium point using the formula eD=|(*triangle*Qd/*triangle*P)(P/Qd)| (hint*triangle*Qd/*triangle*P is the slope of the demand equation) and use this value to verify that the excess burden can also be calculated using this formula EB=1/2ed(PQ)t2
The dividend is expected to grow 7 percent a year for the next 3 years and then at 5 percent a year thereafter. Illustrate what is the expected dividend per share for each of the next 5 years.
Suppose the managers of the two firms decide to collude. If they formed a cartel, illustrate what would be the profit maximizing level of output.
How does lower and middle management decision management differ from upper-management in terms of basic economics.
Assessing the development of the discipline from today's perspective, how would Keynes's impact compare with that of your candidate.
Illustrate what was your total revenue in dollars yesterday (be sure to include your commission). Why would your profit for the day be considerably less than this total revenue.
Will these monopolies typically earn economic profits. Why do not other airlines enter these monopoly routes.
Find the net demand curve-facing industry A. Conclude A's optimal price also o/p. How much o/p do the other Industries provide in total.
Draw the MC cure for Guns in terms of the production of butter. If the economy produces 3000 guns per day, how much butter can it produce per day.
Assume that household consumption decision suddenly become less sensitive to change in the rate of interest.
Explain which it would not be optimal for Firm 1 to make the investment if there were no threat of entry.
then an initial increase in aggregate demand of $100 billion will eventually shift the aggregate demand curve to the right by.
Assume that Ms. Thompson is currently exhausting her money income by purchasing 10 unites of A and 8 unites of B at price $2 and $4 respectively. Elucidate what these data suggest about Ms. Thompson.
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