Suppose the government decides to decrease taxes (T) permanently, the effect of this policy in the medium-run is: 1. Y does not change, C and S increases. 2. Y does not change, C and S decreases. 3. Y does not change, C decreases and S increases. 4. Y. C and S does not change.
Q: Costs, P P₁ = $20 ATC, = $15 Find Q where MR = MC Q₁ = 7 MC -MR₁ ATC Q
A: A profit-maximizing firm produces at the intersection point of MR and MC in order to maximize…
Q: The time cost estimates for the various activities of a design project are given below: Normal…
A: Introduction Time cost optimization is the relation between bringing the time and cost required to…
Q: 2. A production function is given by the equation Q = 100L04K0.6 Where L is the number of labour…
A: Given; Production function; Q=100L0.4K0.6 where; L= Quantity of labor units. K= Quantity of capital…
Q: Suppose that the price-demand and the price-supply equations are given respectively by the…
A: Given, p=D(x)=40-0.2x ---Demand p=S(x)=27.5+0.001x2---Supply
Q: Suppose the demand for oil is P=197Q-0.20. There are two oil producers who form a cartel. Producing…
A: Cartel member produces the profit maximizing output where MR=MC=6. And then share the total profit…
Q: 6. Person A owns a food truck specializing in artisanal tofu. Person A has been informed that the…
A: Price elasticity of demand is a measure which calculates percentage change in quantity demanded in…
Q: A researcher interviewed 2067 people and asked whether they were the primary decision makers in the…
A: The chi-square says that assuming noticed frequencies fit the normal frequencies, we realize that…
Q: The organisers of a college basketball tournament estimate that the demand for tickets by adults is…
A: Given information Demand function for adults Qa=2750-50P Demand function for students Qs=7750-200P…
Q: In which of the following situations will total revenue increase? Price elasticity of demand is 1.2…
A: When the firms want to change their elasticity of demand, they make use of price elasticity of…
Q: Consider the case of the following large country (all prices are measured in euros, and quantities…
A: The concept that depicts the exchange of goods and services among countries through exchanging money…
Q: Suppose you have the following information on the marginal physical product of labor in rice…
A: Marginal physical product of labor measures the change in output production due to a change in labor…
Q: Use the information below to find the missing information. Chase Bank Assets Liabilities Total…
A: 1. a. Total Reserve=Exccess Reserve+Required Reserve =2,000,000+660,000…
Q: When the second order derivative of a function is greater than zero than the agent is risk lover.…
A: Given, Utility Function : u(x)=2x2-5 It is given that the person is a risk loverThe second order…
Q: Consider the macroeconomics process/perspective. 1). Do you think it helps the economy to…
A: 1. It affects you when the price of a product you wish to buy rises. But why is the price…
Q: Nominal GDP is $6,900, real GDP $5,600. GDP deflator equals OA 100. OB. 123.21. OC. 143.31. OD.…
A: In Simple language we can say that the basic GDP or gross domestic product is gradually calculated…
Q: Suppose 2 players play the following game infinite times in the future. What should equilibrium…
A: *Answer:
Q: Does migration cause poverty? Explain.
A: In economics, migration refers to the situation when people move from one country to another country…
Q: Identify any two potential drawbacks that Unilever could face given their choice of sourcing method.
A: The RSP comprises a set of Mandatory Requirements that must be met by all of our suppliers in order…
Q: A super typhoon greatly affected the mango farms in Philippines by making the mango crops taste…
A:
Q: Why we need to investigate the relationship between migration and income inequality? Explain.
A: There are several types of economic inequality, the most common of which are income disparity…
Q: Make sure and use the concepts and terms IN ECONOMIC EFFICIENCY, GOVERNMENTS AND INEQUALITY. 1.…
A: There are huge wants for the products but the resources are not available much, so there is a…
Q: using an 8% rate of return determine the acceptability of a proposed engineering project using…
A: *Answer:
Q: Suppose the demand for oil is P=146Q-0.20. There are two oil producers who do not cooperate.…
A: given that, demand for oil is P=146Q-0.20 oil costs $7 per barrel also two oil producers are not…
Q: details for the two project proposals are shown below: IRR NPW (15%) EUAW(15%) OJECT 1 20.01%…
A: Answer is given below
Q: 1.The Data of unemployment is given Below: * Unemployment popculation is 5.5 million *…
A: When talking about labor force, it is the proportion of working age population that has the ability…
Q: Four hundred driver's license applicants were randomly selected and asked whether they passed their…
A: * SOLUTION :-
Q: The following equations describe the monopolist's demand, marginal revenue, and the marginal cost:…
A: Dead-weight loss occurs when firm produces less than socially efficient level of output.
Q: explain the concept of 8R's in saving natural resources
A: Natural resources are those derived from nature and utilized with little alteration. This…
Q: What is Tesla Inc. in 2018 all about?
A: Introduction Elon Musk, Tesla's Chairman and CEO, tweeted on August 7, 2018, that he was…
Q: What are the possible effects of minimum wage increase to the economy?
A: Minimum wage is the lowest wage below which an employee cannot hire workers.
Q: A decrease in the price level accompanied by no change in the money wage rate leads to movement…
A: The short-run aggregate supply (SRAS) curve depicts the positive relationship between price and…
Q: Suppose the following game is played infinite times in the future. Time discount is 0.90. What…
A: The outcome of a situation of interactions between persons with competing interests is studied by…
Q: Explain the concepts Gross national product, Net national product, National income and Disposable…
A: The worth of a country's finished domestic products and services during a certain time period is…
Q: What are the weakenesses of Tesla Inc. in 2018?
A: Tesla Inc. was an American start-up situated in Silicon Valley.Nikola Tesla, a well-known inventor…
Q: This figure depicts a situation in a monopolistically competitive market. MC ATC PRICE 100 8 882 889…
A:
Q: Suppose the inverse demand curve on ore is given by P = 77 - 0.42 Q. Ore can be either mined or…
A: Given P = 77 - 0.42Q MC1 = 7q1 MC2 = 12 + 3q2 Find out What percent of total demand is satisfied by…
Q: What is interest rate parity? Is it a reasonable assumption that interest rate parity holds between…
A: The theory of interest Rate parity (IRP) can be explained as a fundamental analysis that helps in…
Q: Let the inverse demand function and the cost function be given by P = 50 − 2Q and C = 10 + 2q…
A: Introduction We have given uniform pricing monopoly. Inverse demand function: P = 50 - 2Q Multiply…
Q: hypothetical data for the U.S. economy in 2023 (all amounts are in trillions of dollars): Category…
A: Answer to the question is as follows:
Q: An increase in the matching rate: Increases the time it takes to fill a vacancy. Reduces the…
A: The surplus exists when there is excess supply in the market. It means the supply exceeds the demand…
Q: Suppose that the price-demand and the price-supply equat p= D(z) = 50 -0.24, (a) Determine the…
A:
Q: PRICE à à à à P₂ P₁ P aa'a P₂ P₁ MC ATC AVC
A: In the perfectly competitive market, equilibrium is established where the P =MC. the price should…
Q: 5 WHILE USING GAME THEORY METHOD EXPLAİN CLİMATE CHANGE STRATEGIES PLAYERS PAYOFFS AND OUTCOMES IN…
A: Let us assume there are two countries (A and B) who are facing the decision of whether to…
Q: Lorenzo and Neha are farmers. Each one owns a 12-acre plot of land. The following table shows the…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: A firm that used only labor and capital in production incurs a total cost of ₱4,000.00. The wage…
A: Initial price w=100, r=200 and TC= 4000. And after change in wage it will becomes w=400.
Q: (4) We now consider the government's choice of s≥ 0. We can see from above that profits and outputs…
A: * SOLUTION :- (4)
Q: If a government of a country with a zero trade balance increases its budget deficit, then what will…
A: The exchange balance is the contrast between the worth of the merchandise that a nation (or another…
Q: Output and income are in equilibrium when planned expenditures C+1+X-IM are equal to national…
A: Given data, C= 118+0.81Y I= 26 X=21 IM=90+0.06Y
Q: Imagine there are two companies, East Wafer and West Wafer, which produce silicon wafers, the base…
A: East wafer and West wafer have equal and constant costs and they formed a cartel. Given that they do…
Q: Answers provided to the questions are helpful.Thanks alot. Kindly add more points to question 1(a)…
A: 1(a) As stated in the question, after COVID-19, there has been a steady increase in low-income…
Suppose the government decides to decrease taxes (T) permanently, the effect of this
policy in the medium-run is: 1. Y does not change, C and S increases.
2. Y does not change, C and S decreases.
3. Y does not change, C decreases and S increases.
4. Y. C and S does not change.
Step by step
Solved in 2 steps
- Demand in two perfectly competitive markets increases by the same amount in each market. In market A, the demand is an elastic demand. In market B, the demand is an inelastic demand. Everything else is the same in both markets. In which market will the effect on the total spending in the market be the greatest? a) The effects on total spending will be the same in each market. b) Total spending will change by more in market A. c) Total spending will change by more in market B. d) One cannot tell what the relative changes in total spending will be.The price of a product is expressed as p, PHP = 10 – 28D where D is the demand. Which of the following correctlyexpresses the total revenue? A. 10 − 28D^2 B. 28D = 10 C. 10D − 28D D. 10D −28D^2Please answer the correct answer ASAP please calculation please Don't answer by pen paper please ASAP The market for bananas is also perfectly competitive. Each banana-growing firm has cost function C(Q)=145+ 20Q+0.75Q2. The aggregate demand for bananas is 1500-2P. Find the long-run aggregate quantity of bananas sold in this market.
- Improved robot technology was recently incorporated into the process of producing automobiles. What will happen in the market for automobiles in the short-run?Answer questions E and F based on the situation: _____ E) Which of the following changes will occur: a) Demand will increase b) Demand will decrease c) Supply will increase d) Supply will decrease _____ F) Which of the following changes will occur: a) Equilibrium price will increase and the equilibrium quantity will increase b) Equilibrium price will decrease and the equilibrium quantity will decrease c) Equilibrium price will decrease and the equilibrium quantity will increase d) Equilibrium price will increase and the equilibrium quantity will decreaseConsider two companies (A and B) which produce good A and good B respectively. To produce A, one needs capital and labor. To produce B, one also needs capital and labor; however, the supply elasticity of capital is lower for good B than it is for good A. In other words, as interest rates change, people are less likely to invest in good B than in good A. Holding all else constant, which good will have a higher elasticity of labor demand (in absolute value) and why?1. Suppose marginal cost and average cost are given by the following expressions: MC(x)=3x1/2, AC(x)=2x1/2. What is the profit maximising quantity when p=$3?2. Suppose marginal cost and average cost are given by the following expressions: MC(x)=3x1/2, AC(x)=2x1/2. What is the value pf the long-run break-even price?3. For any given level of the price of output, the supply curve of a producer tells the producer the amount of output to produce in order to maximise profits a. True b. False
- Which of the following must be true in the long run? Production increases when prices increase. An increase in the price level reduces aggregate demand. The natural rate of unemployment is not affected by changes in production capacity. Full employment increases when price level decreases. Prices and wages are flexible.Economic profit is the difference between total revenue and the A) costs of resources bought in markets.B) normal profit. C) interest costs of production.D) opportunity costs of production.Amazon May be Sprinting into Athletic Apparel People increasingly wear their workout clothes outside the gym and athletic clothing sales in the United States increased by 15 percent in 2015 and 12 percent in 2016. Amazon wants to get this $44 billion market, which is currently dominated by Nike and Under Armour. How will Amazon’s entry into the athletic clothing market influence Nike and Under Armour? Choose the best answer. Amazon’s entry into the athletic clothing market will 1.(increase, decrease, have no effect) the demand for Nike’s and Under Armour’s clothing. Nike’s and Under Armour’s price will 2. (increase, decrease, have no effect) and the quantity they each produce will 3.(increase, decrease, have no effect). They were making an economic profit before Amazon entered (which is why Amazon entered the market) but Amazon’s entry 4.(raised, decreased, had no effect on) their economic profit.
- Short-run and long-run effects of a shift in demand Suppose that the shrimp industry is in long-run equilibrium at a price of $5 per pound of shrimp and a quantity of 300 million pounds per year. Suppose that the Centers for Disease Control (CDC) announces that a chemical found in shrimp is causing bacterial infections to spread around the world. The CDC’s announcement will cause consumers to demand ______ shrimp at every price. In the short run, firms will respond by_____. Shift the demand curve, the supply curve, or both on the following diagram to illustrate these short-run effects of the CDC’s announcement. (TABLE 1) In the long run, some firms will respond by ______ until _______. (TABLE 2) The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is _____ in the long run. Shift the demand curve, the supply curve, or both on the following diagram to illustrate both the short-run effects of the…For this discussion, assume the role of CEO of one of the following hypothetical companies: All America Grocery Inc. We serve communities in the middle of the income market, providing low prices for all basic grocery needs. Our modest-income consumers expect good deals on good quality foods. The Covid-19 pandemic has put upward pressure on the price of everything we sell. Cost-push inflation from multiple sources is impacting our operating cost and our cost of goods. We are both fortunate and unfortunate that the price elasticity of demand for food is .20. In your discussion post, address the following prompts within the context of your chosen hypothetical company of which you are the CEO: Is the demand curve for your product relatively elastic, inelastic, or unitary elastic? Demonstrate this for your company's product by how much the quantity demanded will change if you pass on the 10% increase in cost. In other words, prepare a forecast showing by what percentage the quantity…Then, plot points along the portion of the firm's short-run supply curve that corresponds to prices where there is positive output.