6. Find the equilibrium solution for each of the following models: (a) Qd = Qs Qd = 3 - p2 Qs = 6P - 4 (b) Qd = Qs Qa = 8 - p2 Q; = p2 - 2 %3| %3D %3D
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- You have been tasked with developing a research report based on an economy of your choice anywhere in the world. The economy you select should be a growing economy or an economy that has experienced growth at some stage in its development. Present the finding of your research under the following headings. DETERMINANTS OF DEMAND Identification and in-depth discussion of the determinants of demand that have led to an increase in market demand in one of the critical industries in your chosen economy. (Make reasonable assumptions where necessary). (250 - 300 words)Suppose that the marginal cost of extracting a non-renewable natural resource is MXC(Q) = 10 and the marginal benefit of using the resource is MB(Q) = 90Q. In the context of a static model, address the following questions. (a) Calculate the efficient value of Q if the total stock of the natural resource is Q = 50: Provide a graphical representation of the solution.Suppose that the marginal cost of extracting a non-renewable natural resource is MXC(Q) = 10 and the marginal beneÖt of using the resource are MB(Q) = 90Q. In the context of a static model, address the following question: Calculate the efficient value of Q if the total stock of the natural resource is Q = 50: Provide a graphical representation of the solution.
- Question: Suppose that the marginal cost of extracting a non-renewable natural resource is MXC(Q) = 10 and the marginal beneÖt of using the resource are MB(Q) = 90Q. In the context of a static model, address the following question: Calculate the efficient value of Q if the total stock of the natural resource is Q = 50: Provide a graphical representation of the solution. My Note: This is my first time resubmitting, I was told to confirm that MXC(Q) =10 is the correct form of the Marginal cost of extraction to answer this question correctly. I'm not sure but this is the way my professor asked his question.In the Faustmann model, what factors determine the marginal benefits and marginal costs of allowing a stand of trees to continue to grow for another year, and therefore the dynamically efficient harvest interval?The demand equation for a product for a product brand of mackerel is given by the equation Qx=50-7Px+0.002I+12Py Where Qx=monthly consumption per family in cartons Px=price per carton of makerel=GHC 2.00 I=median annual family income=GHC20,000 Py=price per carton of competing brand of mackerel=2.5 Required: i.At the stated values of the explanatory variables,calculate the consumption of makerel(cartons). ii.what is the relationship between Good x and Good y? iii.what is the nature of Good x ? iv.Suppose the median annual family income increases to GHC40,000,What will be your new consumptino for Good x? v.Suppose that the price per carton of competing brand increases GHC3.00, What will be your new consumption for Good x?
- i. List all the endogenous and exogeneous variables in the model.answer with given formulaand complete solution with explanationthe following mundell-fleming model of a small, open economy will be used in all numerical exercises. it assumes a short-run framework in which prices are constant and output is demand-determined. c=150+0.8(y-t) i=500-30r nx=400-150e m/p=50+y-60r r=5 g=300 t=100 m=3000 p=3 the above values of exogenous variables will be referred to as their original values in the questions below. for this question, assume that the exchange rate is floating. derive the equilibrium equations for is* and lm*, sketch a graph of the two equations and solve for the equilibrium values of y, e and nx.
- the following mundell-fleming model of a small, open economy will be used in all numerical exercises. it assumes a short-run framework in which prices are constant and output is demand-determined. c=150+0.8(y-t) i=500-30r nx=400-150e m/p=50+y-60r r=5 g=300 t=100 m=3000 p=3 the above values of exogenous variables will be referred to as their original values in the questions below. for this question, assume that the exchange rate is floating. derive the equilibrium equations for is* and lm*, sketch a graph of the two equations and solve for the equilibrium values of y, e and nx. b)Suppose the Treasury attempts to stimulate the economy by decreasing taxes T from 100 to 70. Calculate the new values of Y, e and NX. With the help of the graph you sketched in (a), explain the mechanism by which a new equilibrium is reached. answer part bthe following mundell-fleming model of a small, open economy will be used in all numerical exercises. it assumes a short-run framework in which prices are constant and output is demand-determined. c=150+0.8(y-t) i=500-30r nx=400-150e m/p=50+y-60r r=5 g=300 t=100 m=3000 p=3 the above values of exogenous variables will be referred to as their original values in the questions below. for this question, assume that the exchange rate is floating. Suppose the Treasury attempts to stimulate the economy by decreasing taxes T from 100 to 70. Calculate the new values of Y, e and NX. With the help of the graph you sketched in (a), explain the mechanism by which a new equilibrium is reached.Suppose the market demand curve for a non-renewable resource is given by: Q=2000-40P. Consider a finite-period model. Which of the following are true? Suppose the marginal cost of extraction is constantly at 40. Suppose the risk-free interest rate is 10% Select all correct answers. a. When there is plenty of this resource, the marginal user cost can be zero in all periods on the optimal extraction path. b. If marginal user cost is 2 in a given period on the optimal path, the marginal user cost should be 2.2 in the previous period c. The dynamically efficient extraction quantity is 400 per period until the resource is exhausted. d. When 200 units are exhausted in a given period, the marginal user cost is 5.
