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Q1. Suppose that the first week of summer, Jenny charged 25 cents for an 8-ounce cup of lemonade, her next-door neighbor Sam charged 50 cents for an 8-ounce cup of lemonade, and Alex across the street charged 15 cents for an 8-ounce cup of lemonade. Illustrate the most probable to happen?
Q2. If a firm is losses money, it might be enhanced to stay in business in the short run. Is this statement ever true? Explain the condition?
Q3. Assume the prices of owning as well as operating a car. A $25,000 Ford Taurus financed over 60 months at 7 percent interest means a monthly payment of $495.03. Insurance costs $100 a month regardless of how much you drive. The car gets 20 miles per gallon and uses unleaded regular gasoline that costs $3.50 per gallon. Finally, suppose that wear and tear on the car costs about 15 cents a mile.
Explain how many units of pork will the government be forced to buy to keep the price at $2.25. How much will the government spend in total.
Explain why sharp decline in oil prices might not necessarily have positive or negative impact.
Identify one positive or negative supply shock in the last decade and what is the impact that the shock has had in our economy.
Show how each of the following would initially affect a bank's assets and liabilities.
The impossible trinity refers to the idea that a country can simultaneously pursue only two of the three following policies: free international-capital flows, monetary policy for domestic stabilization, and a fixed exchange rate.
Draw the production possibility curve and a. Define consumer surplus and producer surplus.
Which is a tax on profits generated from mining of iron ore and coal.
A residential rental property is acquired during the first month of the taxable year, at a total cost (including transaction costs) of $1,200,000.
Divide the Banzhaf power index by the number of votersin state. Are votersin small states or are votersin big state more powerful, according to this measure.
Assume the current market price of candles is such that there is a surplus.
Suppose a duopoly and let demand be specified by P=A-BQ. In accumulation both firms have same marginal cost c. Interaction between the two firms will be frequent infinite.
Increasing the minimum wage will result in a decrease in employment for workers who now earn less than the new minimum wage.
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