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Macroeconomics
The interest-rate effect
a.
is the least important reason, in the case of the United States, for the downward slope of the aggregate-demand curve.
b.
depends on the idea that decreases in interest rates increase the quantity of goods and services demanded.
c.
is responsible for the downward slope of the money-demand curve.
d.
depends on the idea that decreases in interest rates decrease the quantity of goods and services demanded.
a.
is the least important reason, in the case of the United States, for the downward slope of the aggregate-demand curve.
b.
depends on the idea that decreases in interest rates increase the quantity of goods and services demanded.
c.
is responsible for the downward slope of the money-demand curve.
d.
depends on the idea that decreases in interest rates decrease the quantity of goods and services demanded.
Microeconomics
What are the 4 arguments for Protective Trade?
Microeconomics
Qdx = 500 - 5Px + 0.5I + 10Py - 2Pz
1. based on the demand function above, what is the relationship between commodity x and commodity y
2. based on the demand function above, is commodity x a normal good or an inferior good. explain your answer
1. based on the demand function above, what is the relationship between commodity x and commodity y
2. based on the demand function above, is commodity x a normal good or an inferior good. explain your answer
Microeconomics
Suppose that price of labor is Rs.300 and the price of capital is Rs.400.what is the equation of the isocost line corresponding to a total cost of Rs.1000?
Microeconomics
The cardboard box industry is composed of 100 identical firms, each having short-run total costs given by: STC = 0.5q2 + 10q +5
Where q is the output of cardboard boxes per day.
The market supply is given by: 100q = 100P -1000.
And the market demand for cardboard box production is given by: Q = 1,100 – 50P
a. What will be the equilibrium in this marketplace? What will each firm’s short-run profits, and what is profit for the industry as a whole?
b. Compute the total producer surplus in this market.
c. Suppose the government poses a $3 tax on snuffboxes. How would this tax change the market equilibrium (i.e. demander price, supplier price, after tax quantity, and total tax revenue)?
d. How would the burden of this tax be shared between buyers and sellers?
e. Calculate the total loss of producer surplus as a result of the taxation of cardboard boxes? What is the total loss in profits as a result of the taxation?
Where q is the output of cardboard boxes per day.
The market supply is given by: 100q = 100P -1000.
And the market demand for cardboard box production is given by: Q = 1,100 – 50P
a. What will be the equilibrium in this marketplace? What will each firm’s short-run profits, and what is profit for the industry as a whole?
b. Compute the total producer surplus in this market.
c. Suppose the government poses a $3 tax on snuffboxes. How would this tax change the market equilibrium (i.e. demander price, supplier price, after tax quantity, and total tax revenue)?
d. How would the burden of this tax be shared between buyers and sellers?
e. Calculate the total loss of producer surplus as a result of the taxation of cardboard boxes? What is the total loss in profits as a result of the taxation?
Microeconomics
The average total cost to produce 200 cookies is Rs.0.50. per cookie.The marginal cost is constant at Rs.0.10. for all cookies produced.Refer to this scenario,the total cost to produced 200 cookies is
Macroeconomics
1. The amount of consumption in an economy depends:
A. Inversely on the level of disposable income
B. Directly on the level of disposable income
C. Inversely on the level of saving
D. Directly on the rate of interest
A. Inversely on the level of disposable income
B. Directly on the level of disposable income
C. Inversely on the level of saving
D. Directly on the rate of interest
Microeconomics
A consumer spends all her income on food and clothing. At the current prices of Pf = K10 and Pc = K5, she maximizes utility by purchasing 20 units of food and 50 units of clothing
What is the consumer’s income?
What is the consumer’s marginal rate of substitution of food for clothing at the equilibrium position?
What is the consumer’s income?
What is the consumer’s marginal rate of substitution of food for clothing at the equilibrium position?
Microeconomics
1. Use the following market demand and supply equations to answer questions a and b
Qd = 100 – P, and Qs = 10 + 2P and
ATC = 0.5Q
a) Calculate the competitive market’s profit-maximizing price, quantity, and profit
b)Now assume, the market above is a Monopolist’s market. Calculate the Monopolist’s profit-maximizing price, quantity, and profit.
c)Use one graph to show everything you calculated in part a and b of this question. When you look at the graph, how is the price, quantity, and profit of the monopolist different from the competitive market?
Qd = 100 – P, and Qs = 10 + 2P and
ATC = 0.5Q
a) Calculate the competitive market’s profit-maximizing price, quantity, and profit
b)Now assume, the market above is a Monopolist’s market. Calculate the Monopolist’s profit-maximizing price, quantity, and profit.
c)Use one graph to show everything you calculated in part a and b of this question. When you look at the graph, how is the price, quantity, and profit of the monopolist different from the competitive market?
Microeconomics
What is market equilibrium ??
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#340153 on Dec 2023
#340153 on Dec 2023