Demand Equation: QX = 30 - 2.PX Inverse Supply Equation: In an economy with PX = (QX / 2) - 5, answer the following questions by calculating the price and quantity generated in equilibrium. i) What is the Equilibrium Price level? ii) What is the Balance Quantity level?
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Inverse Supply Equation: In an economy with PX = (QX / 2) - 5, answer the following questions by calculating the
i) What is the
ii) What is the Balance Quantity level?
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- The new home market tends to be highly cyclical. Prices and home sales depend on the broader economy, including interest rates and personal income, among many other factors. Determine the affect of each of the following on the market for new homes including new home sales and the price of new homes. While you do not need to turn in a supply and demand diagram, you may wish to still draw one to assist you in answering the following questions. A robust economic expansion raises personal incomes Select one: a.Quantity increases and price increases b.Quantity increases and price decreases c.Quantity decreases and price increases d.Quantity decreases and price decreasesSuppose we have two consumers in the market. Joe has the following demand curve: P=10-Q1. Lucy has the following demand curve: P=10-3Q2. Find (algebraically) the formula for the market (or aggregate) demand curve. Draw all 3 curves on 3 separate graphs that should be drawn next to each other (so I can see the horizontal summation of quantities).The following graph shows an increase in aggregate supply (ASAS) in a hypothetical economy. Specifically, aggregate supply shifts to the right from AS1AS1 to AS2AS2, causing the quantity of output supplied at a price level of 125 to rise from $250 billion to $350 billion. The following table lists several determinants of aggregate supply. Complete the table by indicating the changes in the determinants necessary to increase aggregate supply. Determinant Change Needed to Increase ASAS Nominal Wage Rate Tax Rates Technology
- A stock market bust leads to a decrease in wealth in the economy. What happens to equilibrium price and RGDP in the economy? 1) Equilibrium price and equilibrium RGDP increase. 2) Equilibrium price and equilibrium RGDP decrease. 3) Equilibrium price will rise and equilibrium RGDP will fall. 4) Equilibrium price will fall and equilibrium RGDP will rise.The new home market tends to be highly cyclical. Prices and home sales depend on the broader economy, including interest rates and personal income, among many other factors. Determine the affect of each of the following on the market for new homes including new home sales and the price of new homes. While you do not need to turn in a supply and demand diagram, you may wish to still draw one to assist you in answering the following questions. Mortgage interest rates increase Select one: a. Quantity increases and price increases b. Quantity increases and price decreases c. Quantity decreases and price increases d. Quantity decreases and price decreasesThe new home market tends to be highly cyclical. Prices and home sales depend on the broader economy, including interest rates and personal income, among many other factors. Determine the affect of each of the following on the market for new homes including new home sales and the price of new homes. While you do not need to turn in a supply and demand diagram, you may wish to still draw one to assist you in answering the following questions. Mortgage interest rates increase Select one: a.Quantity increases and price increases b.Quantity increases and price decreases c.Quantity decreases and price increases d.Quantity decreases and price decreases A robust economic expansion raises personal incomes Select one: a.Quantity increases and price increases b.Quantity increases and price decreases c.Quantity decreases and price increases d.Quantity decreases and price decreases There is a shortage of copper pipes and wiring. Select one: a.Quantity increases and price increases b.Quantity…
- Which of the following statements concerning the aggregate demand and aggregate supply model is correct? a. The aggregate demand and aggregate supply model is nothing more than a large version of the model of market demand and supply. b. The price level and quantity of output adjust to bring aggregate demand and supply into balance. c. The aggregate supply curve shows the quantity of goods and services that households, firms, and the government want to buy at each price. d. The aggregate demand shows the quantity of goods and services that firms are willing to produce at a given price level.Which of the following is true? A. Potential GDP decreases as the price level increases. B. At full employment, aggregate supply is equal to potential GDP. C. The potential GDP line has a negative slope. D. Potential GDP increases as the price level increases. E. Aggregate supply is another name for potential GDP.The new home market tends to be highly cyclical. Prices and home sales depend on the broader economy, including interest rates and personal income, among many other factors. Determine the affect of each of the following on the market for new homes including new home sales and the price of new homes. While you do not need to turn in a supply and demand diagram, you may wish to still draw one to assist you in answering the following questions. There is a shortage of copper pipes and wiring. Select one: a.Quantity increases and price increases b.Quantity increases and price decreases c.Quantity decreases and price increases d.Quantity decreases and price decreases
- What is true about equilibrium price level? a. There will be some surplus in the economy b. There will be some shortages in the economy c. There will be either surplus or shortages in the economy d. There will be neither surplus nor shortages in the economyAssume that the economy is currently in short-rim equilibrium Use words and diagrams to describe what will happen to equilibrium price and equilibrium output in the following two cases. An increase in foreign real national (2.S) A flood in the country (2.5)Describe the change in aggregate supply that should result from each of the following changes in determinants. Assume that nothing else is changing besides the identified change. (In your answer, indicate whether the change will "Decrease" or "Increase" aggregate supply or have no effect.) (a) A rise in the average price of inputs; (b) An increase in worker productivity; (c) Government antipollution regulations become stricter; (d) A new subsidy program is enacted for new business investment in productive equipment; (e) Energy prices decline.
