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suppose the total demand for wheat and the total supply of wheat per month in the kansas city grain market are as shown in the table below. suppose that the government establishes a price ceiling of $3.70 for wheat. what might prompt the government to establish this price ceiling? next suppose that the government establishes a price floor of $4.60 for wheat. what will be the main effects of this price floor?
Choose three of the most effective alternative methods of government finance. Provide a rationale for your choices by explaining why they are the most effective methods, and analyze their impact on the economy.
Illustrate what effect will each of the following events have on the current account balance and the exchange rate if the exchange rate is fixed.
Explain how much must government spending increase to eliminate the GDP gap.
As oil prices rose during 2006, the demand for alternative fuels increased. Ethanol, one alternative fuel, is made from corn.
Calculate the tax incidence of the buyers and the monopolist.
Assume that Omar's marginal utility for cups of coffee is constant at 1.5 utils every cup no matter Elucidate how many cups he drinks.
Illustrate what happens when a per unit subsidy is replaced with a revenue equivalent lumpsum subsidy.
Elucidate any of the assumptions required for the Coase Theorem likely to be violated in an important way.
Suppose that there are freezing temperatures in Florida. At the same time the press reports that drinking orange juice significantly reduces the risk of stomach cancer. Predict the effect on equilibrium price and quantity.
What is the monthly interest rate? How much will Susan pay each month for 45 months? What effective interest rate is being charged?
Elucidate how that a profit-maximizing bundle will typically not exist for a technology that exhibits increasing returns to scale
Hair Grow Co. has a demand curve of P=101-.00002Q Marginal cost for producing Hair Grow pill is $1. Illustrate what is the profit-maximizing price and quantity. What is the profit.
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