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A newspaper recently lowered its price from 50 cents to 30 cents. As it did, the number of newspapers sold increased from 240,000 to 280,000.
Suppose that the market demand for medical care is summarized by the following function: P=400-2Q And the market supply is summarized by the following function: P=50+3Q. Calculate the equilibrium price, assuming no health insurance is available. Calc..
You plan to buy a common stock and hold it for one year. You expect to receive both $1.50 from dividends and $26 from the sale of the stock at the end of the year. If you wanted to earn a 15 percent rate of return, what is the maximum price you would..
Does a monopolistic competitor produce more or less output as compared to an efficient level of production? Explain. What are the benefits and drawbacks of this? Should the government intervene to alter this?
What are some of the unintended consequences of efforts to regulate the illicit global economy? How can states more effectively reduce the negative consequences of black markets?
Illustrate what are the factors that determine the demand for and provide of money.
The united states exports a substantial amount of scrap iron and steel to Japan and other countries. Explain Why do some US users of scrap iron and steel support a prohibtion on these exports
On October 19, 1987, the Dow Jones industrial average dropped about 500 points or a little more than 23%. What effect should a decline in stock values of this magnitude have had on aggregate demand according to the life-cycle theory of consumption?
Suppose commercial banks have no excess reserves. Then new deposits totaling $1 billion come into the banking system. If the required reserve ratio is 20 percent, what is the maximum amount by which banks can increase deposits in the entire system?
Let u(x, y) denote a utility function where x is the quantity of good X and y is the quantity of good Y consumed. Assume the quantities can take any value greater than or equal to zero and that the utility function has strictly positive marginal util..
Calculate output, price, total revenue and total profit at revenue maximizing activity level and n at profit maximizing level.
The entry of low-cost carriers into commercial aviation had a legacy of factors - both environmental and operational - that contributed to their business models. If the Airline Deregulation Act of 1978 helped them scale their operations, their 'no-fr..
When the interest on a loan is below market, a lender must offer a discount to induce the investor market (secondary market) to purchase the loan. Assume a house is worth $100,000 if purchased with all cash. The existing 9% assumable loan has monthly..
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