i) In a free market, when the market price is above the equilibrium price, a surplus exists. Falling prices will then cause a rise in demand and a fall in supply to restore the equilibrium in the market.
Q: Find the book value of machine purchased 2 years ago for P20,000 if i is depreciated using sum of…
A: A prominent way of estimating depreciation is the sum of year digits (SYD). To calculate…
Q: If clients in an industry have homogeneous price-quality choices, a company with higher than average…
A: Answer: An industry with homogeneous price and quality is called perfectly competitive industry. The…
Q: Name and describe at least one international organization or trade agreement which has sought to…
A: International trade is described as the exchange of commodities, services, and capital across…
Q: True or False If breakeven analysis is conducted with PW analysis for different MEAs, it doesn’t…
A: Any firm will run at a break-even point as it is being able to cover its variable costs and is not…
Q: p=10? b) Logan is not willing to pay for a security guard, how many hours of guard services will…
A: b) In this, marginal revenue is nothing but marginal benefit.Now,Shane demand for guard…
Q: . What is the economic value of home production based on a salary of $4,000/month for 35 years…
A: Answer; Given Rate of interest = 3% Per annum = 3/12 per month = 0.25 % Number of…
Q: Lidia recently purchased a home and obtained a mortgage from the bank at a nominal interest rate of…
A: The relationship between inflation , nominal interest rate and real interest rate is explained by…
Q: In the short run, if a competitive firm is making profit, the firm should produce. But if a…
A: A firm in the market should produce in the short-run up to the loss is less than fixed costs because…
Q: If intersection between AD and AS is much higher than the natural rate of output, how would the…
A: Demand and supply In perfect market competition the optimum quantity is produced where the demand…
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: Which of the following is not true? O Monopolistic competition and perfect competitive markets do…
A: Answer - Monopoly :- Monopoly is a market where one firm has capacity to influence price levels as…
Q: The demand and total cost functions for a monopolistically competitive market are: Q(P) = 300/N –…
A: Q(P) = 300/N – P TC(Q) = 50 + Q²
Q: Why is a flatter Philips curve good news for monetary policy authorities? Draw the Philips curve,…
A: The Philips Curve is a graph that depicts the relationship between inflation and unemployment.
Q: 2. Suppose the total cost function of a firm that produces hotdogs is C= 150q - 4q° + 29' where q is…
A: Answer to the question is as follows:
Q: You are faced with making a decision on a large capital investment proposal. The capital investment…
A: Initial Investment = 640,000 Annual Revenue = 180,000 Expense after 1 year =42000 Expense decreasing…
Q: You are asked to employ the studied model of Perfect Competition to analyse the fishers in the…
A: A theoretical market structure is referred to as perfect competition. There are no monopolies under…
Q: Suppose there is a simultaneous increase in government spending (fiscal policy) and autonomous…
A: Re-arranging the functions : Consumption function : C = C0 + bY - bT Tax : T = T0 + tY Similar…
Q: Suppose that if you purchase a share of SuperCo, you will receive an annual dividend of $2.59 next…
A: Answer; Given Annual Dividend= $ 2.59 Approprate Discount Rate = 6.75% 0r 0.0675…
Q: Liquidity Aggregates (in million pesos) Transferable and other deposits in foreign currency…
A: Money multiplier refers to the process of creating money by commercial banks. The deposits made by…
Q: 2. Suppose two players are caught in a prisoner's dilemma with the payoffs given by Nice Mean Nice…
A: Nice Mean Nice 2,2 -4,5 Mean 5,-4 -2,-2 probability = β Row wise Player 1; Column wise…
Q: Suppose that the price of chocolate changes from PHP 40 to 42 and the quantity demanded for banana…
A: Given: Old Price of chocolates = PHP 40 New Price of chocolate = PHP 42 Old quantity of banana = 70…
Q: ose a French bottle of champagne costs 20.5 euros. uctions: Enter your responses rounded to the…
A: An import is a good or administration purchased in one country that was delivered in another.
Q: A firm sells its output in a PCM. The finm's short-run cost function by given SC = q' -0.29 + 4q +…
A: In this question:- The short run cost function=q3300-0.2q2+4q+10 Here the short run supply curve…
Q: Consider the following table, which provides the price of beef and the price of all foods from 2014…
A: Any relative price is the price of the good in terms of price of other good. It is simply a ratio of…
Q: cars in Japan is given as: Japanese demand = 10,000 - 0.001(Price of U.S. cars in yen). imilarly,…
A: Imports lead to a surge of assets from the country since import exchanges include payments to…
Q: Which of the following components is NOT included in the calcula GDP using the expenditures…
A: GDP measures the total value of goods and services purchased in an economy during a specific period…
Q: The current account balance is equivalent to an excess of domestic expenditure (C + I+ G) over gross…
A: When the government is short, it spends more thàn it taxes. Can borrow from in public, which may…
Q: Consider a 30-year US corporate bond paying 4.5% coupon. The bond is currently priced at $958. Find…
A: The bond market is the market that shows the inverse relationship between interest rate and the…
Q: From 1980 to 2010, China achieved a rapid increase in per capita Real GDP by: lowering its…
A: The extraordinary greater part of China's exports comprises made merchandise, of which electrical…
Q: Read the article and answer quesion 3. If demand for cellphones is increasing so much, why aren't…
A: Hi, we are providing solution only for question 3, since you have specifically asked for the same.…
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: figure shows a Country's Before and after trade equilibrium a) Under autarky, how many computer…
A: This figure shows a Country's Before and after trade equilibrium a) Under autarky, how many computer…
Q: QUESTION 3 The 1928 Pact of Paris (the Kellogg-Briand Pact) a. unequivocally banned all wars,…
A: 3. The accord was multilateral.
Q: Please type the answer by the computer, so I can see it clearly, thank you!!! Assume the Federal…
A: Open-market operations, the reserve requirement, and the discount rate are the Fed's three main…
Q: Can you discuss more about achievement & World's Impact of AFTA (ASEAN free trade area) ?
A: The Association of Southeast Asian Nations (ASEAN) Free Trading Area (AFTA) is a trade bloc…
Q: The figure shows the hat market before and after a demand shift. Based on the figure, which of the…
A: Equilibrium in the market occurs at the intersection of demand and supply curves.
Q: Find the book value of machine purchased 2 years ago for P20,000 if it is depreciated using sum of…
A: Economic depreciation is a proportion of the lessening in the market worth of a resource after some…
Q: A) Suppose the economy is in full employment and that people start using cash less frequently in…
A: Answer - IS-LM :- IS-LM is a model help evaluate overall economic activity. As IS deals with the…
Q: For each of the events describe below, you are required to explain: 1. The market you are evaluating…
A: “Since you have asked multiple questions, we will solve the first three parts of the question for…
Q: PCM. The finm's short-rur function is given SC = 7q' -0.2q' + 4g + 1 a. Derive the short-run su
A: *Answer:
Q: Which of the following is an advantage of a partnership? Group of answer choices Multiple partners…
A: Partnership is a type of business in which two or more persons manage and operate a business and…
Q: Commercial banks hold governments bonds of £71, reserves of £61, and currency of £48. The public…
A: Answer to the question is as follows:
Q: Assume two countries (US and Germany) are facing the decision of whether to participate in the Paris…
A: A dominant strategy is a strategy that the player will always choose irrespective of what the other…
Q: 21. Jessie can sell 10 water bottles for $65 each, 20 water bottles for $60 each, 30 water bottles…
A: TR=P*Q TR(10)=10*650=$650 and so on MR=change in TR per unit MR(20)=1200-65020-10=55 and so on…
Q: A firm faces the following average revenue (demand) curve: P= 130 - 0.02Q where Q is weekly…
A: Firm maximizes profit by producing at a point where marginal revenue is equal to marginal cost
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: Agreement or not. The following payoff matrix contains the estimated payoffs for both countries for…
A: According to Nash equilibrium, if any of the players changes their strategy, nothing is gained if…
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: Which of the following goods would be included in the calculation c gross domestic product? Steel…
A: Gross domestic product (GDP) measures the market value of final goods and services produced by an…
Q: 100 80 60 40 2020 2015 20 2010 20 40 60 80 Percentage of Households 100 In 2010, of the households…
A: Answer to the question is as follows:
Step by step
Solved in 2 steps with 1 images
- Starting from an initial equilibrium price, a surplus at that price can be created either by an increase in supply or a decrease in demand. TRUE FALSEA particular equilibrium price-quantity is more theoretical than real in most markets. Does that make the concept useless? Explain.If the equilibrium quantity in a competitive market is 25, but society (by some means) buys and sells a total of 41 units, then an inefficiency is caused by the exchange of 16 units.True or False
- When the actual price in a market is above the equilibrium price we would expect: a. a shortage of the good or service. b. this higher price to be the new equilibrium. c. a surplus of the good or service. d. an excess demand or excess supply depending upon the extent of the difference between actual and equilibrium price.An economist estimates that a market has a demand curve of the form P = 26 - (0.867) Q and a supply curve of the form P = 0.5 + (1.21) Q. (See the curves graphed in the figure below.) Accordingly, she estimates that the equilibrium price ( P e) in the market will be $15.36 (or $15.355561). This means that the amount of the product bought and sold in the market must be ____.In a free-market, how are the equilibrium price and the market-clearing price related? Question 6 options: a) there is no relationship b) they are the same price c) the market-clearing price exceeds the equilibrium price d) the equilibrium price exceeds the market-clearing price
- Consider a poor country confronting the rising price of eggs, an important food source for the population. The government considers imposing a price ceiling to keep the price of eggs at an affordable level for the population. The price ceiling would cause the following... Group of answer choices At the new price, fewer egg producers would supply the market and there would be fewer eggs available on the market. The quantity of eggs demanded and supplied to the market would rise and the market would reach a new better equilibrium The market will get the signal that more eggs are needed and more producers will join the market to raise production. The population would be able to afford more eggs and improve their situation.The quantity exchanged in the market will be below the equilibrium quantity whenever the prevailing market price is not equal to equilibrium price. Is this statement true or false? Please include 2 graphs indicating the quantity exchanged in each graphAssume a market price is set artificially high. In other words, the price is set above the equilibrium price. How will this affect the market? 1. Every consumer loses surplus, and it all gets transferred to producers 2. Every producer gains surplus, due to the higher price now being charged. 3. Some consumers drop out of the market, and those left some surplus 4. None of these are correct
- Some have argued that higher cigarette prices do not deter smoking. While there are many arguments both for and against this view, some find the following argument to be the most persuasive of all: “The laws of supply and demand indicate that higher prices are ineffective in reducing smoking. In particular, higher cigarette prices will reduce the demand for cigarettes. This reduction in demand will push the equilibrium price back down to its original level. Since the equilibrium price will remain unchanged, smokers will consume the same number of cigarettes.”Do you agree or disagree with this view? Disagree - the reduction in demand will push the equilibrium price below its original level. Disagree - this confuses a change in demand with a change in quantity demanded. Agree - the price increase will ultimately leave cigarette consumption unchanged. Disagree - higher cigarette prices will actually increase the demand for cigarettes.Some have argued that higher cigarette prices do not deter smoking. While there are many arguments both for and against this view, some find the following argument to be the most persuasive of all: “The laws of supply and demand indicate that higher prices are ineffective in reducing smoking. In particular, higher cigarette prices will reduce the demand for cigarettes. This reduction in demand will push the equilibrium price back down to its original level. Since the equilibrium price will remain unchanged, smokers will consume the same number of cigarettes.” Do you agree or disagree with this view?If the government sets a price ceiling in the market for fuel oil that falls below the equilibrium price , it will Question 14 options: lead to the quantity demanded of fuel oil exceeding the quantity supplied. lead to the quantity supplied of fuel oil exceeding the quantity demanded. decrease the demand for fuel oil. increase the supply of fuel oil. have no effect in the market for fuel oil.