The consumers in the economy buys only two general types of products: Apples, and Bananas. Price and Quantity information of these items over a period are shown below:   Year 2019 Year 2020 Product Quantity Average Price per Unit Quantity Average Price per Unit Apples 5 $5 9 $12 Bananas 15 $20 21 $20  Using year 2020 as the base year, the economy's consumer price index (CPI) in year 2019 is ______.  (Your answer should include the first decimal point, if any.)

Q: 3.If two construction companies merge, this is called a ________ merger, whereas if a bakery merges…

A: Horizontal merger is when two or more firm that produces the goods of same type merges.  Vertical…

Q: Buying and selling government securities to financial institutions is called:   A. Open market…

A: Monetary policy is the policy used by the central bank of the country to control the money supply in…

Q: If a monopolistically competitive industry is earning short-run positive economic profits, what do…

A: In a Monopolistically competitive market ,  Firms produces where MR = MC  MR is the marginal revenue…

Q: Assume a fixed MC across the two firms MCA = MCB = 4. Assume further that they both face a mark…

A: Firms under imperfect competition have varying degrees of control over the prices of the products…

Q: QUESTION 36 The severance pay for each of the first five years of service shall be calculated as:…

A: Part 36 Option b is correct. Generally, the gratuity or the severance pay is not liable in the first…

Q: Which of the following will shift the short-run aggregate supply up and to the left? A) An increase…

A: In economics, aggregate supply or domestic final supply is the total supply of goods and services…

Q: Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to…

A: Pure strategy Nash Equilibrium: Nash equilibrium with 2 players is the strategy profile where both…

Q: given froduction function F=K^1/4 L^1/16 price of capital and labor are v and w 1)find short run…

A: In the short run, at least one input is held constant whereas in long run all factors of production…

Q: Use the table below to answer the following question. Income (Dollars) 20,000 24,000 0.75 What is…

A: Marginal Propensity to Consume measures the proportion of an rised income that gets spent on the…

Q: You are the manager of Taurus Technologies, and your sole competitor is Spider Technologies. The two…

A: * SOLUTION :-  Given that ,     The cost function is  C(Qi) = 2Qi,  The product is given by P =290 -…

Q: What is Efficiency Wage? What are are some of the advantages and disadvantages of Efficiency wages?…

A: Effectiveness wages are above-market wages paid by bosses to work on the efficiency of their labor…

Q: What is/are the Nash Equilibrium(s) in this game? 1. (5,5) only. 2. (7,7) only. 3. both (5,5) and…

A: Nash equilibrium is the equilibrium point in which each player chooses its optimal strategy in…

Q: The long run is defined by economists as being  it depends on the industry   1-5 years   greater…

A: The passage of time has a significant impact on how well the good is produced and how much is…

Q: Mattie consumes milk and cookies. Assume Mattie has a strictly diminishing marginal rate of…

A: Utility refers that the wants satisfying power of any commodity , diminishing marginal rate of…

Q: O lower interest rates that will stimulate AD and lower resource prices that will increase SRAS O…

A: Short run aggregate supply (SRAS) curve depicts the goods and services supplied at each price level…

Q: Consider a quantity-setting duopoly. The two firms are Alpha, Ltd. and Beta, Inc. The demand…

A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, as per the…

Q: The Money Supply:

A: Money supply with immediate cash in = Demand or checkable deposits + money market checking account +…

Q: How does health disparities affect the labor market and money market

A: Health disparities are the prevalence of inequities in the burden of disease, harm, abuse, as well…

Q: Consider the following sets of investment projects. All projects have a 3-year investment life.…

A: Future value is calculated as  F=CF1+in Where CF is the present value and n is the number of years…

Q: QUESTION 19 All partners in a General partnership are liable for any debts, only to the extent of…

A: A general partnership is a type of business organization when two or more people concur to divide…

Q: If we assume imperfect asset substitutability, how does a sterilized foreign exchange intervention…

A: Imperfect asset substitutability is a situation in the international market when the central bank of…

Q: In the graph below, the free-trade price and quantity exchanged would be P $10 $8 $6 C $6,50 O $10,…

A: If the domestic market equilibrium price is greater than the world price then the free trade price…

Q: QUESTION 23 A worker who has completed five years of service shall, for each additional year of…

A: ***Since the student has posted multiple questions, the expert is required to solve the first…

Q: Muriel Evans writes the following note on the back of an envelope: "I, Manuel Evans, promise to pay…

A: We show that a negotiable instrument is a signed contract that promises an amount of payment to a…

Q: Md/P) = 2×Yb(r + πe)-a where 0 < b < 1 and 0 < a < 1. a) Use the real money demand above to…

A: Q E4. The Quantity Theory of Money (QTM) states that the money supply is directly proportional to…

Q: Starting at the end of the present year (i.e., end of year 1), Meredith plans to deposit her annual…

A: Given  Interest rate =3% compounded quarterly Initial deposit (A1)=$5000 Annual increment (G)=$400…

Q: QUESTION 26 Not all entrepreneurs have responsibilities toward their employees. True False QUESTION…

A: Since you have posted multiple questions, we will provide the solution only to the first question as…

Q: Prices are still px 4 and Py = 3, and there is no sale tax on T-Rex toys. Income is equal to the…

A: Optimal consumption bundle: The optimal consumption bundle is such that at that bundle the…

Q: Suppose a monopolist faces the demand curve and cost curves shown below. P6 Dollars à d AP 8 FIGURE…

A: A monopolist will produce where MR = MC.  MR is the marginal revenue.  MC is the marginal cost.…

Q: ssume the US market for loanable funds is in equilibrium. Describe how an increase in the federal…

A: Government experiences budget deficit when governmnet expenditure exceeds governmnet revenue.

Q: Suppose you have $100 to invest. You can hold it in cash, you can deposit it in some savings account…

A: Part 1 Option D is correct. The share of capital in the production function is estimated by…

Q: A consumer's utility function is given by the expression: 0.8 U = (0.6X0.5 +0.4Y0.5) ². Determine…

A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…

Q: A city is debating whether or not to build a new park. The city owns the land, having purchased it…

A: Opportunity cost is an economics term that alludes to the worth of what you need to provide up to…

Q: 2. Excess capacity Osato Chemicals Inc. had sales of $1,720,000 last year on fixed assets of…

A: Fixed asset turnover ratio is the ratio which calculate or measure the efficiency of the assets…

Q: its inception and during its early days, the power of the Federal Reserve bank lay mostly O a. with…

A: The central bank F is one of the most powerful banking institutions in the world. Central bank F…

Q: Consider a 2-sector macroeconomic model: Y = C + I* C = aY + b = [X]. Express this system in the…

A:

Q: 25. Which of the following is NOT a property of a subgame? a. Starts at a singleton decision node…

A: A decision tree refers to a graph that uses a branching method to show every possible output for a…

Q: When marginal cost curve is below an average cost curve, marginal cost O may be increasing or…

A: There is a significant relationship between the marginal cost curve and average cost curve as the…

Q: We try to predict the unemployment (unem) with an AR(1) model and VAR(1) (unemployment and…

A: Unemployment refers to a situation and in general is a social-evil for every economy. It implies the…

Q: Which of the following is not a valid economic argument for​ protectionism? A. infant industry…

A: Protectionism is an economic situation when the trading forces in the domestic country are protected…

Q: Describe the effect on the money supply if the Fed increases the discount rate

A: The discount rate is the interest rate at which the central bank lends money to the private banks.…

Q: Agroscience Company, Cypress, TX manufactures a certain product with estimated variable costs, per…

A: The total cost of a firm is given by: Total Cost = Total Fixed Cost + Total Variable Cost Total…

Q: Exercise 3: A perfect competition firm has a demand equaltion of P=8 ($) and total cost equation of…

A: Given: Demand equation: P=8TC=Q2+2Q+4 The TR and the MR equations will be estimated as follows: TR =…

Q: 1. Draw the following for a firm in a competitive industry. Assume that the firm faces diminishing…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 14. For a certain level of L, MP is increasing. For that level of X (from this level of L): B. The…

A: Production Function: Production function represents a relationship between the input and output. It…

Q: Firm E has cost function C(q) = 3 + 10, where 3q² is the firm's variable cost, and 10 is a short run…

A: In the short run, the shutdown point is when the marginal cost is equal to the average variable…

Q: In general, increasing a tax on a seller blank A. increases the amount buyers purchase B. increase…

A: In order to get the tax revenue, government chooses to tax on either buyer and seller.

Q: In the short-run model, a negative aggregate demand shock to households' consumption (a decrease in…

A: IS curve is used to represent the goods market equilibrium.It represents a negative relation between…

Q: 3. Breakdown of a cartel agreement Consider a town in which only two residents, Gregor and Haidy,…

A:

Q: Suppose AD1 and SRAS1 indicate initial conditions in the goods and services market in Figure 14-1.…

A: Monetary Policy: Monetary policy refers to the policy instruments with the central bank of a country…