Productive efficiency and allocative efficiency
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Problem 1. A ------------ ----------- is a legal maximum price above which a commodity cannot be sold. Problem 2. Cars and gasoline are a good example of-----------(complements, inferior goods, substitutes)
Please help understanding of Supply and demand analysis and the impact of government regulations for Starbucks. Include one reference.
Show the impact on the equilibrium price and quantity that results from (1) an increase in demand (2) an increase in supply (3) an increase in both supply and demand Please provide an example of the role of supply and demand in decision making.
Then solve for the equilibrium output in the domestic economy given Y*. What is the multiplier effect for this open economy? What happens to Y and the trade balance over time if Y*'s economy grows faster than Y's economy.
In long-run equilibrium, pure competition we have P = minimum ATC = MC. Of what significance for economic efficiency is the equality of P and minimum ATC? The equality of P and MC? Distinguish between productive efficiency and allocative efficienc
Derive the LM curve by one of the standard methods used in Macroeconomics. Be sure to label all axis and curves on your graph. Explain in writing to what your derivation brings equilibrium and how it accomplishes this.
Use the following to demonstrate why a firm producing at the output level where MR=MC will also be able to maximixe its total profit. (ie be at the point where marginal profit is equal to zero)
a. Calculate the equilibrium price and quantity. Now, a $20 unit tax is imposed with the statutory incidence on the sellers: b. Calculate the new equilibrium quantity, the new gross-of-tax price, and the new net-of-tax price.
"When taxes and government spending both increase by the same amount (or decrease by the same amount), the size of the deficit or surplus the government had before remains the same."
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