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1) A is a small country that produces and consumes Coffee beans. The world price of Coffee beans is $1 per bag, and A's domestic demand and supply for Coffee beans are governed by the following equations: Demand: QD = 8 -P ; Supply: QS = P, where P is in dollars per bag and Q is in bags of Coffee beans.
Consider an Edgeworth box that describes a two-person, two-commodity exchange
scenario. Explain how trade takes place between the two individuals starting from the
initial endowment position. What is the significance of the slope of the ray passing
through a Pareto optimal point and the endowment point?
A monopolist operates under two plants, 1 and 2. The marginal costs of the two plants
are given by
MC1 = 20 + 2Q1 and MC2 = 10 + 5Q2
where Q1 and Q2 represent units of output produced by plant 1 and 2 respectively. If the
price of this product is given by 20 – 3(Q1 + Q2), how much should the firm plan to
produce in each plant, and at what price should it plan to sell the product?
What is Kuznets’ Puzzle? Explain how the life cycle hypothesis resolves it.
- Molly has a $2500 down payment saved for this purchase, and the dealer’s $1500 Cash Allowance will come straight off her total. How much loan does Molly need?
- How much total interest will Molly pay using this plan?
- When Molly adds all of her payments, how much will the car cost her?
23 If Investor Required Return Is 20% And Capital Gain Is 8% How Much Dividend Company Should Pay?
Is there an inflationary or deflationary gap and what is the size?
What is the level of withdrawals?
Assuming that tax revenues are $7 Billion, How much is the level of savings?
What is the government expenditure multiplier? (Assume that all expenditure is made on
domestically produced goods)
#332078 on Oct 2022