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Suppose that the government places a ceiling on the price of Internet access below the equilibrium price.a. Show why there is a shortage of Internet access at the new ceiling price.b. Suppose that the black market for Internet providers arises, with internet service providers developing hidden connections. Illustrate the black market for inter access, including the implicit supply schedule, the ceiling price, the black market supply and demand, and the highest feasible black market price.
"Students almost always have the option of purcashing a used or new textbook. Although the used book is lower in quality, it also sells for a lower price. Assume that a set of new books costs $1000, and that the set of used books costs $500. Suppo..
Suppose that the town of Grayrock had a population of 10,000 in 1998 and a population of 12, 000 in 2003.
What is Bill's opportunity cost of producing one hat, In which of the two activities does Mary have a comparative advantage.
Consider a bond that promises to pay $100 in one year. a. What is the interest rate on the bond if its price today is $75? $85? $95? b. What is the relation between the price of the bond and the interest rate? c. If the interest rate is 8%, what is t..
Which of the following is true for perfect competition, monopolistic competition, and monopoly?
Propylene is used to make plastic. The propylene industry is perfectly competitive and each producer has a long run total expenses function given through
In 2003 the state of Arizona discuss that there was a shortage in correctional officers. Determine how correctional officers' wages are calculated.
Suppose the public in Nealland does not hold any cash. All commercial banks, however, hold 5 percent of their checking deposits as excess reserves, regardless of the interest rate.
our friend wants to pay off her two debts in a single payment. The first debt is $570 due in 8 months, and the second is $1,380 due 1 1/2 in years. What will that single payment be if she wants to make it at the end of 1 year given a compound inter..
Using the marginal productivity theory of labor demand to forecast the impact on the company's employment level of following events. Describe why the change in employment occurs and show it in a graph.
National income is initially at its equilibrium level when desired investment falls and a fall in national income, but not by as much as the fall in desired investment
A has $1.5 million in sales, a Lerner index of 0.57 and a marginal cost of $50. The firm competes against 800 other firms in its relevant market a. What price does this firm charge its customers? b. What is the firm's markup factor? Wh..
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