5. Draw a market with a non-binding price floor and intuitively explain what will happen, and why, to the equilibrium price, quantity, and economic welfare (consumer & producer surplus).

Q: A monopolist book publisher with a constant marginal cost of 2 and no fixed costs sells novels in…

A: Given  The marginal cost of a book =2 Fixed cost =0. The inverse demand for books in country 1 is…

Q: The firm's short-run cost-function c₂(y,x₂) S-

A: Introduction  Cost function shows the relationship between cost of production and output produced.…

Q: Problem 3: Consider two countries, Domestic and Foreign, that trade three differentiated goods…

A: Intra-industry trade refers to the exchange of similar products belonging to the same industry.

Q: Explain the consequences of both too low and too high a growth rate?

A: We know that Economic growth refers to the increasing production activities in a country over a…

Q: A consumer has preferences over 3 goods represented by the utility function u(x1, x2, x3) x1x2-2-23.…

A: Given: u = (x1x2 )0.5 - 2-x3  MUx1 = 0.5 (x2 / x1 )0.5  MUx2 = 0.5 (x1 / x2 )0.5  MUx3 = Ln2 It is…

Q: In the short-run, if the marginal cost of a firm in a competitive industry is increasing while its…

A: Introduction In the case of a competitive firm, the average total cost will be downward sloping as…

Q: The table below gives the number of labour needed to produce one unit of Cloth and Machine in…

A: Absolute advantage refers to the the ability of the country to produce more output than the other…

Q: Which of the ff. is correct with regards to the demand curve? A. If the price of the good increases,…

A: Demand curve visually represents the quantity demanded by the consumers at different price levels.

Q: What is the dollar value of the total surplus (= producer surplus + consumer surplus) when the…

A: Consumer surplus is the difference between the highest price a consumer is willing to pay and the…

Q: You are starting a new hobby of clay modelling but you need a monthly cost of 12,000 for  materials,…

A: Monthly cost = 12,000 Annual cost = monthly cost ×12Annual cost = 12000 × 12 = 144,000 Weekly sale =…

Q: When there is inflation in an economy, consumers can buy more than they used to with the same money…

A: In an economy, inflation rate is the fluctuations, generally upward, in the general price of goods…

Q: What is scarcity? (BRIEFLY)

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: Suppose that a perishable item costs $10 and sells for $16. Any item that is not sold by the end of…

A: Marginal cost refers to the change in total cost that occurs due to the making of one additional…

Q: classify the following as macroeconomics or micro economics and provide a justification for your…

A: “Since you have posted a question with multiple subparts, we will solve the first three sub-parts…

Q: arefully explain what is happening in the following market indicate the impact if any on demand,…

A: Market: It refers to a place where goods and services are bought and sold. The market is a hub of…

Q: The following are the duration in minutes of a sample of long-distance phone calls made within the…

A: The relative frequency refers to the frequency for a class or a category and is the ratio of the…

Q: Engr. Simon borrows P100,000 at 10% effective annual interest. He must pay back the loan over  30…

A: We have,  Borrowed fund is  P100,000 Effective annual interest is 10% Loan period is 30 years

Q: Which of the following economic changes are consistent with cost-push inflation? Check all that…

A: Cost-push inflation is inflation brought on by rising input costs, such as those for labour, raw…

Q: 2. Using the cost table data and route network shown, determine the traffic flow and other…

A:

Q: just inherited $250,000 from my uncle’s estate. I would like to place that amount in the bank and…

A: Given the information: Inherited amount = $250000 Time = 15 years Interest rate = 12%

Q: All other things equal, the wealth effect means that Multiple Choice O O O O people with high income…

A: The wealth effect explains the change in spending habits in accordance with a change in perceived…

Q: What is the macroeconomic equilibrium? The macroeconomic equilibrium is real GDP of $ ___ trillion…

A: The term "aggregate supply" refers to the overall volume of goods and services offered in the…

Q: Balin's Burger Barn operates in a perfectly competitive market. Balin's is currently earning…

A: In perfect competition,  Price is always equal to marginal cost.  And there is always zero profit.…

Q: 5. Consider a weather forecaster who is paid based on her performance. Each day, she forecasts the…

A: Probability of Rain = p  Probability of no rain =  (1 - p )  The forecast is 'q'  Bonus if it rains…

Q: Find the equilibrium level of national income in the basic Keynesian macroeconomic model. C = 40 +…

A: Introduction: National Income: The national income refers to the whole earnings of a country that it…

Q: Normal profit is Multiple Choice O O O determined by subtracting implicit costs from total revenue.…

A: Profit: An economic entity's profit is the difference between the opportunity costs of its inputs…

Q: Which is a pure-strategy Nash equilibrium in this game? Player 1 None OU, L OM, L and M, R D, R U M…

A: Nash equilibrium occurs when no player can be made better off without making others worse off.

Q: XYZ corporation has budgeted P300,000 per year to pay for labor over the next five years. If…

A: The amount of expenditures anticipated to be expended to create a product or construct something is…

Q: An increase in interest rates by the Federal Reserve is an example of _______ policy. Multiple…

A: The Federal Reserve advances the safety and sufficiency of individual financial institutions and…

Q: ropose potential entrepreneurial and visionary business solutions for manufacturing industry. Use…

A: A subfield of economics called managerial economics deals with the use of economic principles in…

Q: 4. Large number of sellers and buyers -plurality -consumer welfare -homogeneity -free entry and exit…

A: Market is the term used to describe the system in which buyers and sellers negotiate a price and…

Q: Telephone operators who have lost their jobs as a result of computerized switchboards are an example…

A: A person who is able and willing to work at the going rate of pay is said to be unemployed. It is a…

Q: If you read in the newspaper that the United States’ 2015 real GDP declined while nominal GDP for…

A: The entire amount of goods and services generated in an economy each year is referred to as GDP. To…

Q: News headline: “South Korea’s Nominal GDP Grows by 6%” Describe the two other pieces of information…

A: GDP refers to the rise in the production of goods and services during an accounting. A rise in the…

Q: 2. Using the CPIs from “B” why is the percent change in prices from Year 3 to Year 4 NOT 25%? What…

A: Percentage increase in price over years is knows as the inflation.  CPI is the consumer price index…

Q: The following table shows nominal GDP and an appropriate price index for a group of selected years.…

A: GDP or Gross Domestic Product is defined as the value of final goods and services, which is bought…

Q: Imagine there is an outbreak of 'mad sheep' disease, which wipes out a considerable portion of the…

A: a) Two factors occur when the price of haggis rises that will influence how many (units) of haggis…

Q: Calculate the present worth of the following series of incomes and expenses if the interest rate is…

A: Introduction: Given the following information in the questions are: Interest rate per year = 11%…

Q: Market demand for widgets is p = 160 - 2Q. Whether there is just one firm selling widgets or many…

A: Given  The market demand function: p=160-2Q         .....(1) There are two firms in the market and…

Q: The short run is characterized by Multiple Choice O O increasing but not diminishing returns. O…

A: Time period is an important factor which influences the production function and supply of the good.…

Q: 14. Products differ in functional features, materials and design -less consumer welfare -real…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: Consider the insurance problem from class in which an agent with wealth w dollars has a chance 7 €…

A: Given information Initial wealth=W Chances of loss  lies between 0 to 1 Loss amount=l Insurance…

Q: The Canadian government has provided export assistance to Bombardier Inc. with its Technology…

A: In the context of economic trade, the term "free market" refers to an unrestricted system in which…

Q: MACROECONOMIC

A: Introduction: It is given that the total amount that is held by ALI in cash is USD 200. Out of this…

Q: ssuming Lesotho has a high intensity of labour abundance whilst Swaziland has a high intensity of…

A: H-O  Model of international trade emphasize the importance of factor endowment in deciding…

Q: A property is sold for $200,000. Typical financing terms are an 85% loan with a 10% interest rate…

A: Capitalization rate is a real estate valuation measure used to compare different real estate…

Q: The Coase Theorem: Select one: a. states that in some circumstances majority voting can yield…

A: ANSWER:  Option (e) is correct answer e. suggests that in some circumstances government intervention…

Q: 8. Read the Washington Post article "Chicago poised to create one of the nation's largest guaranteed…

A: Income: It refers to the money that people earn. An increase in income makes people buy more goods…

Q: Consider the table of GDP and population for several imaginary countries. Country GDP in millions…

A: Introduction GDP states the total market value of all final goods and services produced in a year in…

Q: How do two countries benefit from trading with each other

A: We know that Countries generally trade with other countries when they lack resources, to satisfy and…