Economics Answers

Lucas' point of view, what are the limitations of Keynesian model?what limitations does he suggest?

If a nation produces more consumer goods and less capital goods, then the nation will have:

If government spending increases by $150 million and the MPC is .8, by how much will GDP increase?

Imagine you are working in the DVD rental industry and there is a permanent decline in demand DVD rentals. Do you think the price of renting DVDs rise, fall or stay about the same in the long run, ceteris paribus (assume a perfectly competitive market)? Explain.

what are the importance of agriculture finance and describe 5 of them?

Under what circumstances might it be possible to reduce inflation without causing a recession?

How does sacrifice ratio estimate the cost of reducing inflation?

What are the remedial actions to the effects of inflation which are the distribution effect, economic effect, and the social and political effect?

1. There is a fruit seller who has 30 Kgs of apples to be sold and he wants to fix a price so that all the apples are sold. There are three customers in the market and their individual demand functions are given below:
D1=25-.05P
D2=20-.025P
D3=15-.075P
Where D is the demand and P is the price
Determine :
 Market demand equation for the fruit seller
 Price at which he can sell all the apples
 Individual demands of each of the three customers

Why do you think the motorcar production exhibits economies of scale but not the trucking (haulage) industry?