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The market for pumpkins is a competitive market where the quantity of crates demanded is given by Qd = 18.2 – 0.2P and the quantity of crates supplied is given by Qs = (P/6) – 0.5.
Provide the inverse demand and inverse supply functions for pumpkins. What is the equilibrium price and quantity in this market?
A tax of $44 per crate of pumpkins is imposed on the pumpkin sellers. What is the equilibrium price and quantity after the tax? How much tax revenue and how much deadweight loss are produced by the tax on pumpkins?
A $10,000 par value bond with coupons at 8%, convertible semi annually, is being sold three years and four months before the bond matures. The bond is redeemable at $C, and purchase will yield 6% convertible semi annually to the buyer. The price of t..
If income rises from 1000 to 1800 and consumption rises from 1100 to 1700 the marginal propensity to save.
In economics, inflation is considered as a tax. There are also various costs of inflation. What is the inflation tax, and how might it explain the creation of inflation by a central bank? Explain how inflation affects savings and investment.
Yet medicines with brand names that the man recognizes from TV commercials sell for more than the unadvertised versions. Elucidate in economic terms, this perplexing situation to the father.
Demand-Supply Analysis and the American Revolution a. Before the American Revolution, the British government required that all imports to the colonies from outside the British Empire were first shipped to England (part of the Navigation Acts). A Bost..
John, Denny, Cass, and Michelle decided to perform music together from time to time. John would pay to book a venue. Denny would pay for gas in Cass’s car (a beat up car, but that she later replaced with a Porsche), How should they split the money th..
Consider a small open economy that maintains a fixed exchange rate. Explain what effects a reduction in the interest rate that prevails in world financial markets would have on each of the following domestic variables after the economy has adjusted t..
The probability of accepting the next wage offer is: Which of the following would be considered a real (as opposed to pecuniary) externality associated with migration? The longer the expected length of tenure on the job:
Could you please explain why long run supply curve can be downward sloping and implication for behaviours of price as demand increases over long run.
Which of the following is a rate that should theoretically serve as a floor for the Fed funds rate? A dealer is said to be running a "matched book" if. An increase in the supply of reserves in the banking system leads to an increase in the Fed funds ..
Comparative advantage - How companies and countries are becoming specialised in certain industries to compete and expand their businesses. Compare Australia with any other country.
A person signs an agreement to offer personal services over a period of five years. The company that hires him, offered to pay him an advance of $30,000 for his professional services at the moment of signing the contract and five additional payments ..
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