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1.suppose the market demand and market supply for apartments in the city of Edmonton are given by the following functions:
Qd = 5000 - 3p
Qs = 1000 + p
a) at what price does the market for apartments in the city clear? how many apartments are rented at this price?
b) suppose the city sets a maximum rent at Rm 1,200.iilustrates the rent control in a supply and demand diagram.is there a shortage? if so,what is the excess demand?
c) at what price does the market for apartments in the city clear? how many apartments are rented at the price?
4. Imagine a society that produces military goods and consumer goods, which we’ll call “guns” and “butter.”
a. Draw a production possibilities frontier for gun sand butter. Explain why it most likely has a bowed out shape.
b. Show a point that is impossible for the economy to achieve. Show a point that is feasible but inefficient.
c. Imagine that the society has two political parties , called the Hawks (who want a strong military) and the Doves (who want a smaller military). Show a point on your production possibilities frontier that the Hawks might choose and a point the Doves
might choose.
d. Imagine that an aggressive neighboring country reduces the size of its military. As a result, both the Hawks and the Doves reduce their desired production of guns by the same amount. Which party would get the bigger “peace dividend,” measured by the increase in butter production?
Explain.
As a policy maker of a country,on which view of economy will you base your policy measures- positive or normative? Explain.
full Answer for Exercise The world’s growing taste of tea
• A coupon bond with a coupon rate of 8% and a face value of $1,000. Coupons
are paid out annually and the bond has 1 year to maturity. The current coupon
has just been paid out. The current price of the bond is $1018.772.
• A zero coupon bond with a face value of $1,000 and 2 years to maturity. The
bond trades at $907.029.
• An annuity that pays $50 every year for the next 3 years. The next payment will
be a year from now and the last payment will be 3 years from now. The annuity
is currently worth $136.967.
All these securities are risk-free. Note that there is no direct borrowing and lending
here, so if you want to borrow (lend) you need to sell (buy) an appropriate bond.
If you want to borrow (lend) you need to sell (buy) an appropriate bond.
Bank of Montreal offers a forward rate over year 3, f3, of 3%. That rate is good
for a loan or deposit of $10,000. Can you make money and eat a free lunch at
Bank of Montreal’s expense? If so, how?
Cross-price elasticity refers to?
The formula for cross-price elasticity is?
Suppose computer prices at an office supply store fall from $1,000 to $900 and as
a result the quantity demanded of typewriters decreases from 40 to 20 per month.
The cross-price elasticity of demand is closest to?
Assume apples and oranges are substitutes. Suppose apple growers launch a
successful advertising campaign that convinces consumers apples are a better
product. As a result the cross-price elasticity of apples and oranges will become?
Suppose the price of video games falls from $40 to $20 and as a result the
quantity demanded of scooters falls from 40,000 to 10,000 per year. The value of
the cross-price elasticity of demand is?
i need answers with explanations
If the price of a good rises by 10 percent and quantity demanded falls by 20
percent, we can predict that
please i need help and explanation for the answer
If resources were in abundance would there be the study of economics?
in the market of professional basketball who are the demand and who are the suppliers?
Suppose you decide to produce maheu and you discover it has a demand function given by