1) Suppose gold (G) and silver (S) are substitutes for each other because both serve as hedges against inflation. Suppose also that the supplies of both are fixed in the short run (Qg = 75 and Qs = 300) and that the demands for gold and silver are given by the following equations: PG = 975 – QG + 0.5Ps and Ps = 600 – Qs + 0.5PG. What are the equilibrium prices of gold and silver?
Q: Which one is an example of a positive externality? O noise from a construction sight O a student…
A: Externality is the effect due to the production activity of a manufacturing firm. For example,…
Q: What is an externality? Provide an example.
A: There are various government policies and private solutions to solve the problem of an externality.…
Q: According to Joseph Harris (1993), which of the following shaped the way that the diaspora related…
A: Introduction It began with the European people in the 15th century. Joseph Harris gives more…
Q: the market for euros, a decrease in U.S. real interest rates tends to Multiple Choice decrease…
A: The equilibrium exchange is determined by the demand and supply for the foreign exchange.
Q: Problem 28-07 Suppose a French bottle of champagne costs 20.5 euros. Instructions: Enter your…
A: The price of the domestic currency in relation to another currency is known as the foreign exchange…
Q: iv) Natural disasters increase the post-disaster Gross Domestic Product (GDP) but are bad to long…
A: GDP refers to the final value of goods and services that produced in a nation in a particular period…
Q: The ________ determines if imports from other countries are being fairly traded in the U.S.…
A: World Trade Organization is an international organization which facilitates the international trade.…
Q: If banks have a required reserve ratio of 25%, and one bank is currently holding $10,000 in excess…
A: Money multiplier =1r=10.25=4 r=required reserve ratio=0.25.
Q: Wakanda is a firm that solely supplies vibranium to Marley and Paradis. The demand function of the…
A: There are two market with different market demand functions and firm is able to discriminate.
Q: Social security in the U.S. is funded by government expenditures current and future taxes the…
A: Note:- Since we can answer only one question at a time, we'll answer the first one. Please repost…
Q: 1a) The surplus and deficit economic agents engage in financial markets transactions to satisfy…
A: The stock markets, fixed income markets, foreign exchange markets along with the derivatives market…
Q: om consumes only two goods, X and Y . He spends 40% of his income in X. Tom’s income elasticity of…
A: Answer - Complement Goods :- Complement goods are those goods that needed to be consumed in a…
Q: Which is a good fiscal policy when inflation is very low and unemployment is very high? Decrease the…
A: Fiscal policy is a policy used by the government to stabilize the economy. The tools are changes in…
Q: A person purchased a new car for $26,200 and financed the entire amount. Suppose that the person can…
A: Given, Purchsed car : $26,200Afford to pay $200 per monthRate of interest : 8%
Q: Identify and explain in detail the three monetary policy tools that the Board of Governors could use…
A: Central bank activities aimed at affecting the amount of money and credit in an economy are referred…
Q: The market position of Easy-Freeze Dinners shows that competition is heavy, though marginal…
A: Here, it is given that the market of Easy-Freeze Dinner is highly competitive, but some or marginal…
Q: Sally consumes two goods, X and Y. Her utility function is given by the expression U = 2XY3. The…
A: Given Px =20, Py=10 and I = 500
Q: Why is GDP (whether nominal or real) almost certainly an incomplete picture of how well an economy…
A: Nominal GDP is an evaluation of monetary creation in an economy yet remembers the ongoing costs of…
Q: The firms in a duopoly produce differentiated products. The inverse demand for Firm 1 is P1 = 112 -…
A: b p1=112-q1-0.5q2p2=130-q2-0.5q1TR1=(112-q1-0.5q2)q1 =112q1-q12-0.5q1q2MR1=112-2q1-0.5q1…
Q: If the population of a country grows and increases both the labor force and the demand for…
A: GDP is the value of final goods and services produced in the economy within a given period of time.
Q: 1. Banks and the money supply. 1.1 Draw a T-account for "Happy Bank" which has $5,000,000 of…
A: Money Supply Money supply stands for the circulation of money in the economy at a particular period…
Q: An economy is sluggish because its impotent govemment has been imposing many inappropriate policies…
A: A sluggish economy is one in which macroeconomic growth is modest to non-existent.
Q: ANSWER B Economics of Education. The issue of education is quite critical. The demand for education…
A: Since you have posted a question with multiple sub–parts, we will solve the first three sub-parts…
Q: Heavy Motors is taking a look at a new product line that will take a few years to create. New lab…
A: Annual worth or AW is referred to as the easy way of understanding the annual amount, for instance,…
Q: The impacts of a (a) budget deficit and (b) capital flight on the equilibrium in the open economy…
A: Budget deficit is a financial situation where by a government of a country borrows more than what it…
Q: When advertising increases brand loyalty for your company's brand, then the company's demand curve…
A: Brand loyalty means that if other new brands enter the market then also I will choose to buy this…
Q: Which of the following statements about institutions is incorrect? O a. The implied covenant of good…
A: Property rights, honest administration, political stability, a solid legal system, and competitive…
Q: Make 2 IRR problems with a diagram and solution.
A: Answer is given below
Q: 3. Using diagrams, show the distribution of the tax burden on consumers and producers with i.…
A: The elasticity of demand is the reaction of demand due to change in price of goods and services,…
Q: PART A You must answer the question in this section. A.1 Individuals in a market each have a total…
A:
Q: 5. Please explain the pros and cons of using cryptocurrency in a country.
A:
Q: The Strategic Planning Process
A: Solution 1) Consider the above given thatStrategic Planning Process emphasizes long term business…
Q: Find the total cost function C(Q) for each firm
A: Total cost is the expenditure that is incurred in the production of goods and services in an…
Q: A government-funded renewable energy electric power generation company has developed the following…
A: * SOLUTION :- (9) Given that , Benifit = 60000 in year 0, and 30000 in year 5. Government…
Q: What is Lerner index? How is it calculated? What does it calculated outcome tell us?
A: In economics, a Lerner index is a tool that helps to measure the market power of a firm. This was…
Q: When comparing two firms operating as a cartel/colluding and two firms competing in Cournot…
A: Cournot competition is an economic model. It is for describing an industrial structure in which…
Q: A profit maximizing firm produces output using capital, K, and labour, L, in the following…
A: Production function, in the study of economics, helps in establishing a relation between maximum…
Q: Use the informetion is the table ta answar he foilowing questions Alnumbers are in bilions of 2012…
A: Real GDP is the value of final goods and services produced in the economy within a given period of…
Q: 3. given by q = LeK. Michelle hires labor and rents capital in perfectly competitive markets where w…
A: Production function : q = L1/6K1/6 w = 1 , r = 64 The major difference between a short run and long…
Q: Suppose the total cost function of a firm that produces hotdogs is C= 150q - 4q +2q where q is the…
A:
Q: consumer surplus
A: First, find the equilibrium price and quantity. Qd = Qs10 - 0.3P = -2 + 0.9P10 + 2 = 0.9P + 0.3P12 =…
Q: 3.* Consider the Heckscher-Ohlin model with the following production functions for food and cloth…
A: The production function having higher rate of marginal technical substitution of capital in place…
Q: Explain what is Game Theory and give an example of strategic games.
A: Game theory Game theory is a conceptual framework for social interactions with competing players.…
Q: 1. The market price for tomatoes is $2/pound. Lynn is too small to influence the price of tomatoes.…
A: The firm keeps the demand for labor as per the marginal productivity of the labor. The firm during…
Q: 29) Suppose a basket of goods and services has been selected to calculate the CPI and 2014 has been…
A: CPI is used to measure change in the general price level in the economy.
Q: Audiences are not concerned with where media texts come from.’ To what extent do you agree with…
A: Generally, people prefer to watch or reach the media text from a reliable source. The Sources of…
Q: Which of the following is true? When the marginal cost is greater than the average cost, there…
A: When any of the firms has the market power, that market is considered as imperfect market as there…
Q: Bordeaux wine sold at auction. The vineyards in the Bordeaux region of France are known for…
A: Answer - T-statistics :- T statistics can understand the deviation from hypotheical values to…
Q: Handheld fiber-optic meters with white light polarization interferometry are useful for measuring…
A: Breakeven point is the point where firm only cover their cost or at that point Total Revenue equals…
Q: How can the tourism industry apply the recovery stages of crisis management to situations in Covid…
A: An economic recovery is the period after a recession in the business cycle.An economic recovery is…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Suppose gold (G) and silver (S) are substitutes for each other because both serve as hedges against inflation. Suppose also that the supplies of both are fixed in the short run and \{(:Q_{C}=300)\} and that the demands for gold and silver are given by the following equations: P_{G}=960-Q_{G}+0.50P_{S} and P_{S}=600-Q_{S}+0.50P_{G} What the the equilibrium prices of gold and silver? The equilibrium price of gold is S and the equilibrium price of silver is S Please explain and show work.Suppose gold (G) and silver (S) are substitutes for each other because both serve as hedges against inflation. Suppose also that the supplies of both are fixed in the short run (QG=60 and QS=300) and that the demands for gold and silver are given by the following equations: PG= 960-QG+0.50PS PS= 600-QS+0.50PG a) What is the equilibrium prices ($) of gold and silver? b) What if a new discovery equilibrium of gold doubles the quantity supplied to 120? How will this discovery affect the prices of both gold and silver?Assuming the inflation-rate rises, give one implication that this increased inflation rate would have on the import cost of creative stamps and craft pens from China
- Let us define "peak oil" as a point in time where the quantity of oil extracted and consumed (let's just assume these are the same) reaches a maximum and then starts to decline. Based on economic theory, (in other words, I'm not asking you to predict anything specific about the oil market in the real world, just a general theory question) should we expect this period of declining production to be accompanied by high and rising prices or by low/falling prices? Give a brief explanation using graphs where appropriate.Real (inflation-adjusted) tuition costs were nearly constant during the 1960s despite a huge increase in the number of college students as the very large Baby Boom generation came of age. What do these constant tuition costs suggest about the supply of higher education during that period? When the much smaller Baby Bust generation followed in the 1970s, real tuition costs fell. What does that fact suggest about demand relative to supply during the 1970s?a. What is the theorized relationship between the unemployment rate and the minimum wage in the static model of the labour market? b. How should the unemployment rate respond to a constant minimum wage in the static model of the labour market?
- Interest, inflation, and purchasing power Suppose Dalia is a fan of young-adult fiction and buys only young-adult books. Dalia deposits $2,000 into a savings account that pays an annual nominal interest rate of 20%. Assume this interest rate is fixed, and so it will not change over time. On the day she makes her deposit, suppose that a young-adult book has a price of $20.00. Initially, Dalia's $2,000 deposit has a purchasing power of #????? young-adult books. For each of the annual inflation rates given in the following table, first determine the new price of a young-adult book, assuming it rises at the rate of inflation. Then enter the corresponding purchasing power of Dalia's deposit after one year in the first row of the table for each inflation rate. Finally, enter the value for the real interest rate at each of the given inflation rates. Hint: Round your answers in the first row down to the nearest young-adult book. For example, if you find that the deposit will cover…If equilibrium wage is $10 and current wage is 9$, then we expect to have more wokers than jobs and thus we should decrease wages less workers than jobs and thus we should increase wages more wokers than jobs and thus we should increase wage less wokers than jobs and thus we should decrease wages None of the aboveWhy should a business owner be concern with the inflation rate in the Dairy products industry, and how might it have an impact on the Dairy products industry?
- Based on economic theory, (in other words, I'm not asking you to predict anything specific about the oil market in the real world, just a general theory question) should we expect this period of declining production to be accompanied by high and rising prices or by low/falling prices? Give a brief explanation using graphs where appropriate.Please please help me asnswer it correctly and fastly The global oil market has been affected in the recent years by many factors that induces the global price to fall. This consequence is vital for the budget of the oil dependent countries. After the huge decrease on oil price in 2016, many traders and analysts believe that oil markets are still not immune to many problems and the oil price will tend to fall again. The main factor and problems toward a fall of the oil price started in 2015 but considering that people and oil companies do not tend to react immediately to the change of oil price, the total consumption and production of oil did not get any surprised changes in the short- run. The main factor that caused the drop on the oil price is the OPEC failure. The member countries of OPEC did not agree to stabilize the oil markets, since the organization decided against cutting production at a 2014 meeting in Vienna. It is estimated that if OPEC does not cut production, the…Recent data from the Bureau of Labor Statistics show that the average price level for consumers rose 5.4% over the past year. While some are expressing concern over rising inflation leading the economy to “overheat,” there is some evidence indicating that this is due to the reopening of the economy as producers adjust to rising demand for goods and services. Many of the goods with the largest price increases, like bacon or cars and trucks, cannot have their production ramped up as quickly as demand is increasing. Other industries are facing supply chain challenges, like shortages of truck drivers. These problems are most likely to be short term, so, as supply catches up with demand, we can expect to see prices return to normal. As evidence, after spiking to record highs in early summer, lumber prices have now fallen below their price at the start of the year. The reason for the dramatic price increase earlier in the year was a combination of reduced supply in 2019 and a surge in demand…