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1. Explain why the real exchange rate never changes under the theory of purchasing power parity?2. What governs the behavior of nominal exchange rates under PPP?3. Suppose that inflation in the US is 4% while in the rest of the world it is 7%. Under PPP, how does E change over time? Does the dollar appreciate or depreciate?
Construct a graph showing supply and demand in the electronic dog feeder market, using Microsoft Excel. 2. How are the laws of supply and demand illustrated in this graph? Explain your answers. 3. What is the equilibrium price and quantity in this ma..
Explain how would this affect the elasticity of demand for gasoline
Suppose that Boeing is the Stackelberg leader and chooses its quantity first, then Airbus makes a move observing what Boeing has done. Solve the equilibrium in this sequential game. Be sure to characterize the quantity choices, the market price, a..
Compare the elasticity of a monopolistic competitor's demand with that of a pure competitor and a pure monopolist. Assuming, identical long-run costs, compare graphically the prices and outputs that would result in the long run under pure competit..
define the union wage gain and the union wage gap. why should we care about the magnitude of the union wage gain? why
Most engineering students own a computer. What cost have you incurred at each stage of your computers life cycle Estimate the total cost of ownership. Estimate the benefits of ownership. Has it been worth its.
Assume that x1 and x2 can take any value (0,1,2,3,4,5). The payoff to student i is 10 - xi if she gets an A and 8 - xi if she gets a B, i = 1, 2. Derive the strategies that survive the iterative deletion of strictly dominated strategies.
You are the manager of Taurus Technologies, and your sole competitor is Spyder Technologies. The two firms' products are viewed as identical by most consumers. The relevant cost functions are C(Qi) = 4Qi, and the inverse market demand curve for th..
Explain how can the concepts of game theory be applied to buying through ecommerce or a retail store. Can you show me an illustration.
Find the solution using the mathematical equivalence formulae (such as F=P(1+i)n), substitute and solve (with your calculator - not with the tables) for the final answer? Solve by using the proper equivalence expressions (such as F = P(F/P, i, n))..
Private and Public Goods) Distinguish among private goods, natural monopolies, open-access goods, and public goods. Provide examples of each.
To improve its standard of living, a nation’s economy must remain stable, grow through innovation or else.
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