Search & Filtering
The demand for schedule for beer is Xd=25-P, where Xd is the quantity demanded of beer in millions of barrels per year and P is price in dollars per barrel.
If the supply curve for beer is Xs = -20 +4P, what is the equilibrium price of a barrel of beer?
Calculate and interpret price elasticity of demand and supply at the equilibrium point.
What would the effect on the price of a barrel of beer if a tax of $ 4 per barrel is imposed by the government?
Supposed the disposable income ranges from 1,110,000 to 1,290,000 and it increases by 30,000 per year. Mpc = .80
When disposable income is 1,000,000 what is the level of consumption is equal to?
A man borrows 10,000 from a loan firm. the rate of simple interest is 15% but the interest is to be deducted from the loan at the time the money is borrowed. at the end of one year he has to pay back 10000. what is the actual rate of interest ?
Assume that agriculture prices fall and the farming sector faces a mild recession. The demand for the small tractors drops to: P = 26,000 – Q.
Suppose the recession is only temporary, and demand will recover soon. What output adjustment should the firm make during the recession?
If the market demand decreases by 50% what will be the new clearing price and
quantity for this market?
If the market demand decreases by 50% what will be the new clearing price and
quantity for this market?
The Nottinghamshire Research Observatory in England calculated that students who attend Nottingham Technical University spend about £2,760 each in the local economy for a total of £50.45 million. In total, the impact of their spending on the local economy is £63 million. “University Brings in £250m to Economy,” Nottingham Evening Post, November 4, 2004, p. 37. Calculate the size of the student spending multiplier
Price X Y
20 40 50
30 40 40
40 60 50
50 55 60
60 60 40
70 70 60
1. Find the cross elasticity of commodity X and Y when price changed from
i. 20 to 30
ii. 40 to 50
iii. 60 to 70
2. Interpret your answers in I, ii and iii above
Suppose the price level in a particular economy equals 1.3 and that the quantity of real GDP demanded at that price level is $1,200. An increase of 0.1 point in the price level reduces the quantity of real GDP demanded by $220, and a reduction of 0.1 point would produce an increase in the quantity of real GDP demanded of $220. Draw the aggregate demand curve and show the price level and quantity of real GDP demanded at three points
According to Alaskan state economist Mark Edwards, the multiplier effect of Alaska’s trade with Japan is such that for every $1 billion exported from Alaska to Japan another $600million is added to the state’s economy.Matt Volz, “Trade Officials Hopeful for JapaneseRecovery,”Associated Press and Local Wire June 22, 2004, BC cycle.Calculate the size of the export multiplier
