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Assume there are 20 identical individuals with a utility function U (x, y) = squareroot xy and income I = I $100. Also, assume that the price for good y is p_y = 4. Furthermore, assume there are 10 identical firms producing good x and using a production function q = squareroot t (i.e., production only depends on labor). Also, assume that the price of labor is w = $0.5. What is the equilibrium price and quantity in this market?
increases the amount of a product that consumers buy because it keeps the price below the competitive market equilibrium. Elucidate do you agree with the student's reasoning.
If there is a 10% decline in the cost of women's fur coats and a 25% increase in quantity demanded Illustrate what is the elasticity.
her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle, and the price of cheese is $4 per pound.
Suppose the intermediation or capital goods costs pho units of the consumption good for each unit of capital intermediated (
Graph the estimate of the AD and AS curves clearly showing the equilibrium point indicating the price on the vertical axis and the output on the horizontal axis.
In which markets will firms probably have the most difficulty recouping their investment in technological innovations?
What are the ways that designers force us to focus on necessary concepts of a play, or how designers force your focus to necessary concepts of the play? and How designers influence your emotions about those concepts?
A U.S. government bond matures in 10 years. Its quoted price is now 96.4, which means the buyer will pay $96.40 per $100 of the bond’s face value. The bond pays 5% interest on its face value each year. If $10,000 (the face value) worth of these bonds..
The Fed announced in April 2011 to it will continue the ‘quantitative easing' by completing the purchase of government securities by the amount of $60 billion.
Even though we recently became a net exporter for gasoline, it appears that for our overall trade with other countries, the U.S. is a net importer and I'm sure, you all know, especially with China, we are huge net importer. Is that good? Which is bet..
Suppose that the equilibrium price in the market for widgets is $5. If a law reduced the maximum legal price for widgets to $4:
On September 30, Silver Corporation, a calendar year taxpayer, sold a parcel of land (basis of $400,000) for a $1 million note. The note is payable in five installments, with the first payment due next year. Sam, the sole shareholder of Silver, has a..
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