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Consider the following consumption function:
Disposable Consumption
Income Expenditure
($ billions) ($ billions)
900 750
1000 800
1100 850
1200 900
1300 950
1400 1000
Suppose desired investment for the economy represented in the table above is $200 billion. Plot the consumption and investment function.
What value is the equilibrium level of income?
What is the marginal propensity to consume?
The costs of manufacturing steel declined substantially from building a conventional hot rolled steel mill down to new mini mill technology that need only scrap metal,
What is the TOTAL amount of output the firm should produce and approximately how much output should the firm allocate to market 1?
Draw a correctly labeled loanable funds graph that shows what happens to real interest rates.
Calculate the price elasticity of demand for Einstein's Bagels and explain what it means. Derive an expression for the (inverse) demand curve for Einsteins's Bagels.
Consider a market characterized by the following inverse demand and supply functions: PX = 10 - 2QX and PX = 2 + 2QX?
What is the effect on the price of a recordable CD and the quantity of recordable CDs sold if a. The price of an MP3 download rises? b. The price of an iPod falls? c. The supply of CD players increases?
Management at the Johnston Corporation estimates a demand function for its lawnmower line to be:Explain the coefficients of each explanatory variable.
Potato chip industry in Northwest was competitively structured and in long run competitive equilibrium; companies were receiving a normal rate of return and were competing in a monopolistically competitive market structure.
Evaulate the price elasticity of demand for subway rides. The subway fare in your town has just been increased from the current level of 50 cents to $1.00 per ride.
Explain what happens to the primary deficit in year t if the nominal interest rate in year t increases to 17%.
Find the taxi firms profit maximizing or loss minimizing output level, Q. Calculate the monopolist's total profit. What is the monopolist's average profit?
Suppose a firm is operating in perfectly competitive product market where the price of its output can be sold at the price p=$10. The firm can hire any number of workers at the wage of W=$50.
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