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Along the aggregate demand curve AD2 curve, as the price level rises from 0.5 to 1.5, th equantity of real output demanded declines from $3,000 billion to $2,000 billion. What happens to the aggregate quantity demanded in nominal terms over this interval? Using the formula for price elasticity of demand (the ratio of the percentage change in the quantity of a good demanded to a given percentage change in the quantity of a good demanded to given percentage change in its price), what is the elasticity of aggregate demand over this interval?
Elucidate the likely impact of this event on the market for gasoline and the market for small cars.
explain the concept of diminishing marginal utility. since all goods are scarce, does diminishing marginal utility contradict the statement that individuals always want more of all foods?
Explain how industrial regulation affects the market and the entities affected by industrial regulation in terms of market structure.
Suppose you know that the actual annual rate of return on a year of education is 5% for both types. Given the numbers in par (c), which type (Alphas or Betas) most likely receives more pure enjoyment from education?
Why as a result of rise in exchange rate, the amount of imports fall but not as much as it does when the supply is perfectly elastic.
Is SPC employing labour and domes in an optimal ratio, assuming that substitution of resources is possible. Elucidate. Conclude marginal income products for exterminators and for domes/pumps employed by SPC.
How great an open market purchase or sale of securities should the central bank undertake to restore the original interest rate.
Make sure to make available examples of real world to strengthen your position of wherever this might be case
Illustrate what will occur to the equilibrium price also quantity of guitar strings
Explain how does a firm solve this pricing problem to maximise profits. Explain, using a diagram to support your answer.
Explain briefly the ethical situation. What are the all the different actions you could have taken. What are the consequences of each of these actions.
Elucidate why from an economic point of view towing a car illegally parked rather than just ticketing it provides a better incentive.
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