Economics Answers

Why do bond prices fall when interest rate rise?

Consider a market with two dominant firms (curnot duopoly) producing a homogenous product.
The inverse market demand function is given by

Suppose that aggregate demand increases such that the amount of real output demanded rises by $11 billion at each price level. By what percentage will the price level increase?

A consultant estimates the Price / Quantity relationship for New World Pizza to be P = 50 – 5Q. (Hint: For what follows, you might find it helpful to calculate marginal revenue.)

a. At what output rate is demand unitary elastic?

b. Over what range of output is demand elastic?

c. At the current price, eight units are demanded each period. If the objective is to increase total revenue, should the price be increased or decreased? Explain.

An equilibrium price is a stable price and must always be. Explain

Suppose Korea's new government increased VAT by 5% point. Explain the effect of tax increase using a D and S curves. Show how would this D and S change result in IS-LM analysis.

Which ONE of the following is the limiting factor to total production in an economy: A. Increase in tax rates B. Increase in consumer wealth

If a market begins in equilibrium and then the demand curve shifts​ leftward, a
A.
surplus is​ created, which is eliminated by a rise in price.
Your answer is not correct.B.
shortage is​ created, which is eliminated by a fall in price.
C.
surplus is​ created, which is eliminated by a fall in price.
This is the correct answer.D.
shortage is​ created, which is eliminated by a rise in price.
E.
surplus is​ created, which is eliminated by the supply curve shifting leftward.

1.suppose the market demand and market supply for apartments in the city of Edmonton are given by the following functions:
Qd = 5000 - 3p
Qs = 1000 + p
a) at what price does the market for apartments in the city clear? how many apartments are rented at this price?
b) suppose the city sets a maximum rent at Rm 1,200.iilustrates the rent control in a supply and demand diagram.is there a shortage? if so,what is the excess demand?
c) at what price does the market for apartments in the city clear? how many apartments are rented at the price?

As a policy maker of a country,on which view of economy will you base your policy measures- positive or normative? Explain.