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Consider the infinite period model for efficient investment. The optimal consumption path is CI-C for t-1, 2, 3 as in the previous question. A countrys output Q is 100 units in each period with no shocks. The investment would require an expenditure of 100 units, and that the investment will pay off in future years by increasing the countrys output by 5 units in year 1 and all subsequent years. The country is open: it can export or import the final good, and it can save or borrow money at a world interest rate 5%. (a) Calculate the present value of output (GDP, Q) and consumption (GNE, C) with no invest ment. (b) Calculate the present value of output (GDP,
The value of the price elasticity of demand is always positive. True of false?
If the price of goods is R5 in a market and price buy plan to purchase 4000 units units weekly and seller plan to sell 5000 unit per week then the price will tent to
What is the one question that the Congressional Budget Office (CBO) is required to ask and then answer regarding legislation?
a) Yesterday, the price of a packet of sachet water was ȼ3.00, and Sompa was willing to buy 10 packets. Today, the price has gone up to ȼ3.75 a packet, and Sompa is now willing to buy 8 packets. Is Sompa's demand for sachet water elastic or inelastic? What is her point elasticity of demand at the original price? What is the mid-point elasticity of demand?


Give an outline of the differentiating characteristics of a monopoly and a oligopoly market structure
discuss the profit maximizing position of a perfectly competitive firm in both the short run and long run
with the aid of diagrams explain the relationship between price elasticity of demand and total revenue
The California State University System has raised its fees by 10%. Would the demand for these universities (such as San Diego State University or CSU – San Marcos) be relative elastic or inelastic? Use the three factors to explain why.
The state of West Dakota currently has per capita income of $35,500, average annual temperature of 43.0 degrees, median age of 37.5 years, and 48.0% (or 0.48) of the population in a metro area. The state suddenly experiences an improvement in its economy, and increases its per capita income to $38,600. This improvement will likely be associated with the burglary rate changing from about 519 annual burgles to about ___ annual burgles (round your answer to the nearest whole number, no decimals).
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