Q: Why tY not substituted for T?
A: In this case, we have to discuss the autonomous consumption. Autonomous consumption means that we…
Q: Please show equations used. No excel please.
A: Cost of Bond = 10,000 FV of Bond = 20,000 Average inflation. = 3% Assuming historical return be 2%…
Q: If the central bank increases the nominal money supply M, a. the IS curve shifts to the left b. the…
A: money supply refers to the whole amount of money in move in an economic system. This includes…
Q: You are evaluating a project for The Ultimate recreational tennis racket, guaranteed to correct that…
A: Cash flow refers to the amount of cash or cash equivalents that flows in and out of a business…
Q: Market demand is given as Qd = 750 – 2P. Market supply is given as Qs = 3P - 15. What is the point…
A: Price elasticity determines the % change in the demanded quantity with respect to a unitary change…
Q: Your firm has employed an economist to estimate your firm's production function. After gathering the…
A: Q = K1/3L2/3 ------> Production function Capital is fixed at 8 units in the short run. K = 8…
Q: 2. The 25th percentile for waiting time in a doctor's office is 19 minutes The 75th percentile is 31…
A: Given: 75th percentile (Q3) = 31 25th percentile (Q1) = 19
Q: SUBJECT: ECONOMICS Problem: Cassy is a school librarian at a university. She has an annual income of…
A: Income tax is a compulsory tax to be paid by the consumers on the income earned by them. The income…
Q: Discuss and define the five (5) concerns that have most strongly influenced the development of…
A: Problem-oriented policing (POP) and community policing have emerged as key strategies for improving…
Q: 8. If a country has an absolute advantage for a specific good relative to a possible trading…
A: Let's first understand what does absolute advantage means:- A producer is said to be having an…
Q: Which of the following statements regarding financing of government expenditure are correct? i. The…
A: Government expenditure refers to the sum of money went through by the government on different…
Q: Use Excel formulas/functions. A new high efficiency motor is being considered for a large…
A:
Q: Suppose that the exchange rate of domestic currency per foreign currency is 6. If the price for a…
A: Purchasing power parity is the equilibrium exchange rate between two different currencies or stated…
Q: Assume that the demand for money is given by: L = kY -hi and that the central bank allows the money…
A: The LM curve represents the combinations of interest rates and levels of income at which the money…
Q: Using Excel Spreadsheet and formulas for this problem (make sure cell references are unique to your…
A: State of nature Decision alternative good economy poor economy…
Q: (g) Explain how is the production structure (i.e. which goods are produced) affected in each country…
A: The Heckscher-Ohlin model is an economic theory that explains the pattern of international trade…
Q: In Referring to the diagram below, which of the following is a true statement? Prices SRAS AD1 AD2…
A: Aggregate demand is the sum of Consumption, Investment, government spending and net export. AD = C…
Q: Pictures 1 illustrates the cost curves of a perfectly competitive producer of wheat. It also…
A: A perfectly competitive firm is a firm that operates in a market where there are many small firms…
Q: a S
A: 1. One possible personal production function is f(m, I, e) = e* 1* m. In this function, the output…
Q: Calculate the economic impact of a selected sport event. Include (a) the net economic change…
A: "Note: The question has been answered in a generalized manner." Economic change refers to the…
Q: Your friend will graduate next year from CUD. After taking all her entrepreneurship courses she…
A: Total production refers to the production of goods and services by using the total inputs. Marginal…
Q: 2. Explaining short-run economic fluctuations A majority of economists believe that in the long run,…
A: Economists say that money is neutral in the long run. Changes in money affects nominal variables…
Q: The graph illustrates the marginal abatement cost (MAC) and marginal damage cost curve (MDC) of…
A: The abatement Cost of pollution refers to the cost to reduce the damage due to the pollution, which…
Q: Assume a closed economy described by an IS-LM model and illustrate with diagrams under which…
A: Investment Savings Liquidity Preference Money Supply model is better known as Hicks-Hansen model.…
Q: 4. Determinants of aggregate demand The graph below is associated with a hypothetical country.…
A: Aggregate demand is composed of consumption spending, investment spending, government purchases, and…
Q: Question 2 Foreign direct investments (FDI) in a developing economy, such as Russia or the countries…
A: FDI stands for Foreign Direct Investment. It is an investment made by a foreign company or…
Q: Question 3 New Trade Theory suggests that a country may become the dominant exporter of a good…
A: Simply put, a first-mover advantage is a company's capacity to outperform its rivals as a result of…
Q: Suppose the demand for dollars (in exchange for euro) is given by the equation: D = 160 +…
A:
Q: Technic Limited is an established company that sells trending technological equipment. Their aim has…
A: It is about inventory management and demand forecasting. In order to ensure that a company does not…
Q: O Macmillan Learning In this game table, the Nash equilibrium is Mario's Fancy Mario's Casual…
A: In game theory, a Nash equilibrium is a strategy profile where no player has a dominant approach.…
Q: Which of the following are included in the "currency" item in Federal Reserve's balance sheet? (a)…
A: The Federal Reserve, also known as the "Fed," is the central banking system of the United States. It…
Q: 344 (dollars per shirt Price 40 36 32 28 24 20 16 12 0 8 16 24 32 40 48 56 64 Quantity (millions of…
A: Studying international economics and comprehending trends in trade, alongside theoretical frameworks…
Q: Suppose there is some hypothetical economy in which households spend $0.50 of each additional dollar…
A: Given Households spending = $0.50 of each additional dollar they earn Savings = $0.50. Increase in…
Q: 1. Various financial instruments usually serve one of two distinct purposes: to store value or to…
A: ***Since the first question posted is from a different subject, hence, the expert has solved the…
Q: The general equilibrium in the IS-LM model occurs where a. the FE line intersects with the IS curve…
A: the proper solution is (c) the IS curve intersects with the LM curve. the overall equilibrium inside…
Q: 6. 6. Let e be the price of foreign currency in units of domestic currency. Assume that domestic…
A: Exchange rate is the price of one currency in terms of another currency. It represents the value of…
Q: To understand the important role played by banks in the economy, we need to imagine a world without…
A: A bank is a monetary institution that acknowledges deposits from individuals and businesses and…
Q: As part of U.S. sugar policy, the government offers to buy raw sugar from domestic sugarcane mills…
A: A domestic market implies a market where the supply and demand of products and services happen…
Q: A firm's production function is Q = K0.3L0.7 If K costs 5 and L costs 9 and the total cost of…
A: A production function is a mathematical equation that describes the relationship between the…
Q: Suppose Hilary is currently using combination D, producing one crochet hat per day. Her opportunity…
A: Opportunity cost is the cost of producing 1 good in terms of other. Opportunity cost shows the…
Q: How do you think a fluctuation in foreign exchange rates affect trade?
A: Foreign exchange rate refers to the price of one currency in terms of any other currency. In…
Q: Solve D) and last part only in typed answer You are an industry analyst that specializes in an…
A: Socially efficient means taking considering private and social costs and benefits of a decision.…
Q: Fill in the columns in the following table. (Enter your responses as whole numbers.) TFC TVC MC P=…
A: MC_{q=5} = TVC_{q = 5} - TVC_{q=4} TR = P*q TC = TFC + TVC Profits = TR - TC
Q: You are considering buying a rental property sells for $405000.0. If the annual rental income is…
A: Rate of return is a financial term utilized to portray the rate of benefit or loss created by an…
Q: The Federal Reserves establishes the interest rate charged on funds it loans to banks and other…
A: Lower interest rates by central bank increases the borrowing of banks which increases the money…
Q: Suppose a hypothetical open economy uses the U.S. dollar as currency. The table below presents data…
A: Public reserve funds of the economy It is a savings account or highly liquid assets placed aside to…
Q: Construct the marginal cost, average cost and average variable cost curves. You may use a computer-…
A: In economics, a cost curve is a graphical representation of the relationship between the cost of…
Q: 41. Suppose that the market for cigarettes is initially in equilibrium and is perfectly competitive.…
A: At equilibrium price, quantity demanded of a good or service is equal to quantity supplied. There is…
Q: According to following diagrams determine the sensitivity parameters of Okun's and Phillips…
A: An empirical correlation between changes in the unemployment rate and real GDP is known as Okun's…
Q: 7. Short-run supply and long-run equilibrium Consider the competitive market for ruthenium. Assume…
A: Given, A competitive market for rhenium. The supply curve shows the range of quantities that a…
Concept of
Step by step
Solved in 4 steps
- Due to high company taxes prevailing in the auto mobile industries, the average prices of motor vehicle specifically sedan has increased from a N$ 170 000 to a N$190 000 and the quantity demand for sedan motor vehicle decreased from 1000 units to 800 units. Use elasticity method to calculate the price elasticity of demand for sedan motor vehicleMOER The table below shows how supply and demand Price ($/gal) Demand (million of gal.) 1 1.2 790 700 1.4 640 1.6 580 1.95 497 2.2 450 2.4 430 2.6 420 2.8 390 3 360 Note: there is some randomization in the above data to account for price fluctuations. Make sure to check that you input the correct data in your device. Perform the following work • Assume that Supply has a quadratic relationship with the price. Find this relationship (the help buttons contain an article to compute trend-lines in Excel): -21.935p² + 207.365p+339.085 Round your answer to 3 decimal places S(p) ● D(p): = 1.53 • Assume that the Demand has a quadratic relationship with the price. Find this relationship (the help button links to an article to compute trend-lines in Excel): 85.561p² - 543.789p + 1236.729 Round your answer to 3 decimal places Video Solve | Sn... of gasoliine vary depending on the price: Supply (million of gal.) 511 550 600 641 660 680 700 720 735 786 605 - • Use the trendlines to find the price…The monthly demand of a company is showed below, please use the static method to forecast the demand for Year 6. Sales Year 1 Year 2 Year 3 Year 4 Year 5 JAN 2,000 3,000 2,000 5,000 5,000 FEB 3,000 4,000 5,000 4,000 2,000 MAR 3,000 3,000 5,000 4,000 3,000 APR 3,000 5,000 3,000 2,000 2,000 MAY 4,000 5,000 4,000 5,000 7,000 JUN 6,000 8,000 6,000 7,000 6,000 JUL 7,000 3,000 7,000 10,000 8,000 AUG 6,000 8,000 10,000 14,000 10,000 SEP 10,000 12,000 15,000 16,000 20,000 OCT 12,000 12,000 15,000 16,000 20,000 NOV 14,000 16,000 18,000 20,000 22,000 DEC 8,000 10,000 8,000 12,000 8,000 Total 78,000 89,000 98,000 115,000 113,000
- Sally Sells Sea Shells by the Sea Shore and collects all sales dataNow she is curious to find out what the elasticity of demand is for her shells Assume they are all the same type and quantity She scatter plots the data and finds there is a linear relationship that looks ripe for a regression estimation of the price response function for her shells The slope of her regression line is 61. Currently, her average daily price is 11.74 and she sells 95 quantity at that priceCalculate the point elasticity of demand for her sea shellsSetting: U.S. Auto manufacturers are trying to develop a multivariate function with which to estimate the demand for their gas-electric hybrid compact cars. Here is one that Motors General developed for its Jolt: Qj = 65000 – 20Pj + 20Pf + 35Pt – 5Pb + 0.2Tc + 0.05Y + 10Mg + 0.04A Where Qj = the number of Jolts demanded per week. Pj = the price of each new Jolt (in $). Pf = the price of each new Ford gas-electric hybrid (in $). Pt = the price of each new Toyota gas-electric hybrid (in $). Pb = the price of replacement batteries for the Jolt (in $). Tc = the amount of tax credit incentive offered with the purchase of a new hybrid (in $). Y = average weekly disposable income of a typical Jolt purchaser (in $). Mg = the miles per gallon of gas rating of the Jolt (in miles per gallon). A = average weekly Jolt advertising expenditure (in $). 6 If all variables remain unchanged except that the price of the Toyota hybrid (Pt) decreases by $500, then the demand for Jolts will: 7…Is auto correlation possible in cross-sectional data? why?
- The price for cigarettes sold by Big Tobacco Co Ltd was 6.00 per packet in March 2018. During the month of March, the consumption of cigarettes was 1000 packets. However, the Board of Directors of Big Tobacco Co Ltd decided to increase the price by 25% during the month of April. As a manager you noted that price elasticity of demand was 0.8. As a manager Big Tobacco Co Ltd: Also, advise your government on recommended interventions in the cigarette market.Given the following data X (consumers of teff) or popn 3 6 8 1 13 13 14 Y ( teff consumption) 8 6 10 12 12 14 20 year 2013 2014 2015 2016 2017 2018 2019 Estimate the regression equation, Y= a+bX, Where Y denotes demand for teff while X is consumers of teff (population) By assuming demand for teff is only affected by its consumers, find the amount demand for teff in the year 2022 if the populations (consumers of teff) are about 18 people? (Hint: use the least square method, parameter a and b can be estimated by solving the two linear equations) SY= na+ bSX SXY=aSX +b Where n is number of years. For example, Estimate the sales for 2012, 2015 and fit a linear regression equation and draw a trend line.ar X Sales (Y) XY X2 year X Sales (Y) XY X2 2002 1 22734 22734 1 2003 2 24731 49462 4 2004 3 31489 94467 9 2005 4 44685 178740 16 2006 5 55319…The price for cigarettes sold by Big Tobacco Co Ltd was6.00 per packet in March 2018. During the month of March, the consumption of cigarettes was 1000 packets. However, the Board of Directors of Big Tobacco Co Ltddecided to increase the price by 25% during the month of April. As a manager you noted that price elasticity of demand was 0.8. As a manager Big Tobacco Co Ltd: A. Advise your management of the strategy that could be adopted by your firm to maintain sales. B. Also, advise your government on recommendedinterventions in the cigarette market.
- Homework (Ch 05) Consider the market for soybeans. The following graph shows the weekly demand for soybeans and the weekly supply of soybeans. Suppose new farming technology is developed that enables growers to produce more crops with the same resources. Show the effect this shock has on the market for soybeans by shifting the demand curve, supply curve, or both. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. 30 Demand 24 Supply Supply 67°F Sunny PRICE (Dollars per bushel) Demand Q OThe price for cigarettes sold by Big Tobacco Co Ltd was6.00 per packet in March 2018. During the month of March, the consumption of cigarettes was 1000 packets. However, the Board of Directors of Big Tobacco Co Ltd decided to increase the price by 25% during the month of April. As a manager you noted that price elasticity of demand was 0.8. As a manager Big Tobacco Co Ltd: Advise your management ofthe strategy that could be adopted by your firm to maintain sales.The formula to calculate elasticity using the arc method is given below: E=Q2-Q1Q1+Q22P2-P1P1+P22Where,Q1= initial quantityQ2=new quantityP1=initial priceP2=new price E=340-306306+340221-2424+212E=34323-322.5E=34×22.5323×-3E=765-969E=-0.79 The value of elasticity in absolute terms is 0.79. Since the value of elasticity in absolute terms is less than one (0.79<1) the demand is inelastic. Can you put the above in correct format as per the formolation i get the answer different so not sure if i am doing something wrong see pic.