Now re-consider part a., assuming that the policymakers (monetary or fiscal) respond optimally to the shock in order to stabilize the economy. In a separate diagram, show how the outcomes would differ, and discuss it carefully. Can the policies reduce fluctuations of the economy compared to part a?
Enrodes is a monopoly provider of residential electricity in a region of northern Michigan. Total demand by its 2 million households is Q^d = 1,000 – P, and Enrodes can produce electricity at a constant marginal cost of $2 per megawatt hour. Consumers in this region of Michigan have recently complained that Enrodes is charging too much for its services. In fact, a few consumers […]
Now let’s consider the case of a “consumer deficit†or the loss represented by consumers who exist at the opposite end of the demand curve. These are those persons who cannot afford to consume any goods or services at the specified price.To address such a consumer loss, imagine that you are now tasked with imposing a “surplus tax†on consumers through the addition of an […]
Your brother came home last night feeling frustrated because his real wage has decreased compared to a year ago. He told you his union should not have signed an agreement with his employer for an annual wage rise of 2 percent. Explain what your brother meant using the concepts of real income, nominal income, anticipated and unanticipated inflation rate.
If the aim of the government is to collect the maximum amount of tax possible, the unit tax should be imposed on a good with a flat demand curve rather than on a good with a steep demand curve. True or false? Explain your answer by using appropriate diagrams.
As a painter $3 per gallon is 35 gallons of $105 per month. At $3.50 per gallon, drops to 20 gallons of $75 per month. Price range, the demand is relatively elastic. Calculation of Price Elasticity of Demand
P16.10: Standard Normal Concept. Speedy Business Cards, Inc., supplies customized business cards to commercial and individual customers. The company is preparing a bid to supply cards to the Nationwide Reality Company, a large association of independent real estate agents. Because paper, ink, and other costs cannot be determined precisely, Speedy anticipates that costs will be normal distributed around a mean of $20 per unit (each […]
Dave has $300 to spend each month on DVDs and CDs. DVDs and CDs both currently have a price of $10, and Dave is maximizing his utility by buying 20 DVDs and 10 CDs. Suppose Dave still has $300 to spend, but the price of DVDs rises to $12, while the price of CDs drops to $6. Is Dave better or worse off than he […]
Suppose we are given a bernouli utility function u(w)=ln(w). Considering a car insurance model, how do we find the fracton of bad drivers in the economy that would permit existence of separating equilibrium? Initial wealth for both drivers=200 Loss=75 probability of good driver not accident=2/3 probability of bad driver not accident=1/3
Can a firm relocate, to find a more attractive location for people to live, to find a more business-friendly location, or to find a place where the talent already lives, in order to gain the human resources they need? Yes, it is true that a firm can relocate as according to the requirement. If a firm is inhospitality or having a restaurant, so it would […]
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more