Explain the concept of excess demand in macroeconomics. Also, explain the role of open market operation in correcting it. (Kinly explain with diagram
Q: Explain and illustrate using isoquants and isocosts how a firm that is currently using the least…
A: For a given isoquant, firm is trying to minimize the cost of production using the inputs…
Q: week 4 Worksheet Quantity in 2014 Price in 2014 Quantity in 2015 Price in 2015 iPhones 60 200 65 300…
A: Nominal GDP is estimated on the current year price level on the other Real GDP measure on the Base…
Q: Write about the stages of building an economic model (econometrics methodology
A: The quantitative application of statistical conclusions, economic theory, and mathematical models to…
Q: A demand function for a product is P = 100 – 2.2Q and its supply function is P = 2.8Q, where P is…
A: The red line shows the demand and the blue line shows the supply.
Q: lgs Review view Help 5-7.D(x) = 2(x-3)² is the price, in dollars per unit, that consumers will pay…
A: * SOLUTION :-
Q: For some years, Mel has contracted with several major pizza retailers for home delivery services. He…
A: Given, New Van :Cost : 137,500 with economic life of 6 yearsTrade in value : 45,000AOC of…
Q: Both the federal government and individual colleges typically use needs analysis, which considers…
A: According to the question, Line A refer to the total adjusted gross income reported on a tax return…
Q: Making dresses is a labor-intensive process. Indeed, the production function of a dressmaking firm…
A: production function of a dressmaking firm=Q = L − L2800 where Q denotes the number of dresses per…
Q: . Moral Hasard and Insurance The utility is U = W¹1/2-350S +95S¹/2; where W is wealth and S is care…
A: Answer;
Q: (d) Calculate the profit or loss of each firm at the short-run market equilibrium. If they are…
A: Competitive market with QS = 50P – 1000 and the market demand is QD = 2800 – 50P
Q: 6. A producer can produce 2500 units of wood parts per day at a plant located in USA. The steady…
A: Answer; Yearly DEMAND = 500 * 200 = 100000 Arrangement COST = 50 HOLDING COST = 1…
Q: Given a firm's total cost function: TC = 50 +2Q +2Q², where Q is the quantity of output. Solve for…
A: Cost of production undergoes change when output increase or decrease.
Q: MULTIPLE CHOICE (identify the one best answer below and explain your reasoning for each option): The…
A: The illegal activities lead to the black economy. Such black activities are not recorded in official…
Q: Which of the following is a valid argument for an independent Fed? The Fed needs freedom to be…
A: In the United States, the Federal Reserve is the monetary authority that has the responsibility to…
Q: Answer the following question and defend why you came to this conclusion using economic principles:…
A: The money supply basically refers to the overall amount of money in circulation in a given economy…
Q: Why do bonds trade at prices different than par
A: Bond:- A bond is regarded as a definite-income asset because it pays bondholders a guaranteed return…
Q: Consider a monopolist with the following demand and cost function: Demand: P = 200 -0.10 Cost: C =…
A: We have downword sloping demand for monopolist and given cost function a function of Q.
Q: The Fed is an agency of the U.S. Treasury Department that has the responsibility of collecting tax…
A: Central Bank: A central bank is the most elevated monetary organization in a financial framework…
Q: What is meant by the term “market power”? Can a monopolist charge any price it wants because it is…
A: Monopoly market is defined as a market structure in which there is only a single seller in the…
Q: What is the nominal gdp and the value added of service sector?
A: Gross Domestic Product (GDP) is defined as the value of all final goods and services that are…
Q: Consider an AS AD diagram. What would happen in the model if Energy prices increased? Group of…
A: Real GDP is the value of final goods and services produced in the economy within a given period of…
Q: Harry and Sally own a dog-walking service. Their service includes driving to their customer's homes;…
A: Given information Originally charged value=$20 Changed price=$15 Fixed cost=$350 per month Variable…
Q: Required information An officer of the state lottery commission has sampled lottery ticket…
A: Probability refers to the fraction of likelihood of an event occurring from a set of possible…
Q: Working through an open-market operation Assume that the following balance sheet portrays the state…
A: Open Market Operation (OMO): An OMO is a monetary tool used by a country's central bank to stabilise…
Q: The Shell Corporation has a 34% tax rate and owns a piece of petroleum-drilling equipment that costs…
A: iven information First cost=$119000 Annual revenue=$33100 Salvage value=$31600 CCA rate=30% Tax…
Q: a. False. The long run potential growth rate always depends on low rates of inflation. b. True, but…
A: a) In the long run, the potential growth rate depends on inflation, demand, employment, technology,…
Q: s China interested in accountability in global business?
A: Accountability is a willingness to be open and upfront about one's performance, enabling others to…
Q: 4) MULTIPLE CHOICE (identify the one best answer below and explain your reasoning for each option):…
A: Meaning of Production Function: The term production function refers to the situation under which a…
Q: What are the failures of the World Bank business indicators? Explain clearly
A: Countries needed capital at the end of WWII. Capital needed to achieve their goals of rapid…
Q: GMA will be visiting an automobile plant. It was decided by the plant management that they must…
A: Boysen Cost of Paint = 70 per gallon Covers = 350sq. ft per gallon time period = 5 years applied…
Q: Possibility Movie Tickets (M) Chocolate Truffles (C) (units) (units) A 60 0 B 40 35 с 20 45 D 0 50…
A: Production possibilities frontier shows different combinations of goods that a country or individual…
Q: The hallmarks of a high-performance corporate culture include A. frequently revised and updated…
A: a solid accentuation on cooperation, severe authorization of organization arrangements and systems,…
Q: A capital asset has first cost of $10,000 and it depreciates at 10% rate annually. Operating costs…
A: Operating costs are the costs of running a business daily. Rent, labour, and other overhead costs…
Q: 1) Analyze the core competitive industries of Bangladesh? In this field, does Bangladesh adopt a…
A: Bangladesh is a growing economy, GDP the economy is increasing at a higher rate. Their manufacturing…
Q: Which of the following does not describe a proprietorship? Owned by one person Has unlimited…
A: A sole proprietorship is an unincorporated business with only one owner who pays personal income tax…
Q: 1. Draw five aggregate supply and demand graphs at long run equilibrium. Illustrate what would…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: In the Baumol-Tobin view of the transactions demand for money Economic agents do not adjust their…
A: In economics, there are different models to explain the nature of money in the market and in…
Q: There are two consumers and two goods (A and B) in a competitive economy. At the competitive…
A: Condition in perfectly competitive market: Mua/MUb = Pa/Pb
Q: The amount of goods and services people can buy with the money they have is called their Multiple…
A: 3rd option is correct Standard of living is the amount of goods and services the average person can…
Q: If an interest rate pays 9% five times a year, calculate the effective rate of interest. please with…
A: Interest rate is the interest charged to the borrower by the person who makes the loan, calculated…
Q: D7 Suppose that people hold 17 cents out of every dollar of deposits as currency. Suppose that banks…
A: MPC = c = 17/100 = 0.17 Reserve ratio = r = 13/100 = 0.13 Formula of multiplier = (1+c)/(c+r)
Q: Derek and Maria are now trying to predict how much money they will raise for their club from the car…
A: Profit = Total Revenue - Total Cost r(x) = 10x + 50 c(x) = 0.5x + 220 Profit = P(x) = r(x) - c(x)
Q: A. $107 billion surplus.
A: The Balance of payments include current account, capital account and financial accounts.…
Q: Mrs. Dolly Bugtong plan to travel abroad with her family. What amount should she save at the end of…
A: Given : Interest = 1.44% Future value of accumulated amount = 250,000 Time Period = 250000 Here, in…
Q: Explain the theories of Max weber in industrial relations shortly.
A: Max Weber was a German sociologist who felt that bureaucracy was the most efficient and rational…
Q: The Federal Reserve sells $28.00 million in Treasury securities. If the required reserve ratio is…
A: Money multiplier = [1 - Currency deposit ratio] / [Currency deposit ratio + Reserve deposit ratio]…
Q: Superconductor technology is becoming a widespread and indispensible component of the machines we…
A: Given, Superconductors play a vital role in the manufacturing of machines. They are found in each…
Q: Given that fixed cost=230 and variable cost=12Q; the total cost of producing 30 units of output is?…
A: Total fixed cost = $230 Total variable cost = 12Q Units = 30 units Total cost = ?
Q: Briefly discuss the obligations of both the seller and the buyer as recognized in our law.
A: Answer explain in step 2
Q: In the design of a jet engine part, the designer has a choice of specifying either an aluminum alloy…
A: In the design of a jet engine part, the designer has a choice of specifying either an aluminium…
Step by step
Solved in 3 steps with 1 images
- “There is constantly a shift in supply and demand curves and markets are never at equilibrium. As a result, there is no purpose of the concept of equilibrium.” Do you agree/disagree with this statement. DEFINE ANY IMPORTANT TERMS.The monthly market for U.S. steel production (in millions of tons per month) is described in the table below. An increase in the price of iron ore, a critical input in the production of steel, shifts the supply curve to the left, decreasing supply by 200,000 tons at each price. (Hint 200,000 tons = 0.2 million tons.) Instructions: Round your answers to one decimal place. a. Fill in the new supply schedule in the table using the "New Quantity of Steel Supplied" column. Market for U.S. Steel Price (dollars per Initial Quantity of Steel Demanded ton) (millions of tans) $650 1.2 6480 630 620 618 608 598 580 570 568 P=$ per ton P=$ 1.3 1.4 1.5 per ton 1.6 1.7 1.8 1.9 b. What are the initial equilibrium price and quantity in the steel market? 2 2.1 million tons of steel s. What are the new equilibrium price and quantity in the market? Initial Quantity of Steel Supplied (millions of tons) 2.2 million tons of steel 2.1 2 1.9 1.8 1.7 1.6 1.5 1.4 1.3 New Quantity of Steel Supplied (millions of…true or false - explain in short be supported with an economic model. If the demand for and supply of a product both increases, the equilibrium quantity of the product must also increase. If the demand for a product decreases and the supply of the product increases, the equilibrium price of the product may increase or decrease, depending on whether supply or demand has shifted more. Assume that there is a fixed supply in the market. A higher price will result from a change in demand brought about by a rise in income.
- Shifting Supply Directions: Determine how each of the following scenarios will impact supply for the market indicated. Graph the shift on the graph, label each graph, identify the shifter and indicate if supply will increase, decrease or not change. EXAMPLE Market: bicycles Scenario: New machinery cuts production time of bicycle chains in half. 1. Market: Bread Scenario: A drought hits the Midwest and destroys 1/3 of wheat crops. 2. Market: Oil Scenario: Producers expect the price of oil to increase in six months. 3. Market: Hybrid Cars Scenario: The government has enacted a program that gives subsidies to producers of fuel efficient cars. 4. Market: Desktop Computers Scenario: An increase in demand for laptops causes laptop prices to increase 125%. 5. Market: Cereal Scenario: Three new manufacturers enter the breakfast cereal market. P VEL S Vy P P S S₁ Shifter: Technology S P v V S S S Q Q Q Q Name. Date Q Q Change in Supply: Increase Shifter: urce Change in Supply: Decrease Shifter:…Explain, with the aid of a graph, market equilibrium and disequilibrium.onsider the market for some product. Suppose the market demand and supply curves are as given below. e quantity is in million units. Demand: p= 18 - 4QD Supply: p=4+2Q⁹ Plot the demand and supply curves on a scale diagram. Compute the equilibrium price and quantity. ) Use the line drawing tool to draw and label these demand and supply lines in the graph at right. ) Use the point drawing tool to plot and label the equilibrium point. arefully follow the instructions above, and only draw the required objects. Price ($) 18.00- 16.00- 14.00- 12.00- 10.00- 8.00- 6.00- 4.00- 2.00- 0.00+ 0.0 1.0 2.0 3.0 Quantity (million units) 4.0 5.0 Q
- (a) The freezing cold spell at the beginning of 2010 increased demand for gas in the UK. Usage reached 454 cubic metres; the previous record was 449 metres set in January 2003. The National Grid which is responsible for energy in the UK issued several warnings in a matter of days that demand could outstrip supply and asked suppliers to increase the supply. (i) Illustrate the effect of the cold spell on the demand for gas using a demand curve diagram. (ii) Analyze two other factors that you think influence demand for gas. (iii) Do you think demand for gas is price elastic or price inelastic? Explain your reasoning. (b) Using a normal demand curve, explain how consumer surplus occurs. (c) Explain and illustrate with diagrams how and why a marginal cost curve maps out a supply curve.ECON1000 - Principles of Economics | S1 20/21 Question 4 Question 1d Incomplete Carefully explain what is happening in the following markets. Indicate the impact if any on demand, supply, price and quantity: answer Marked out of (d) Electricity is a major input into the production of aluminium, and aluminium is a substitute in supply for steel. In the market for steel, the effect of an increase in price of electricity. 6.00 Remove flag Impact on demand No impact Impact on supply Shift outwards /to right Impact on price Decrease equilibrium price Impact on quantity Choose.. Please answer all pa Choose... Increase equilibrium quantity Next page No impact Previous page Change in price uncertain Excess supply Increase equilibrium price Decrease towards equilibrium Decrease equilibrium price Increase towards equilibrium Change in quantity uncertain Shift inwards / to left Excess demand Decrease equilibrium quantity Shift outwards / to right A WWhich of the following is associated with macroeconomics? O A. A study of the trend O B. An examination of of pecan prices since the Second the incomes of Harvard Business School graduates OC.A case study of pricing and production in the textbook industry O D. An empirical investigation of the general price level and unemployment rates since 1990 World War QUESTION 11 The law of demand states tha "an increase in the quantity demanded means that price has declined and consumers therefore want to purchase more of the product" O True O False QUESTION 12 Compared to coffee, we would expect the cross elasticity of demand for O A. tea to be positive, but negative for cream Oc, both tea and cream O D. both tea and cream to be positive O B. tea to be negative, but positive for cream to be negative
- Assuming hypothetical equilibrium in Demand/Supply Model of Apples, illustrate impact of following events:Suppose the Doctors recommend eating Apples every morning. The Monsoon rains adversely affect the Apple Harvest. The government announces increase in Wages of workers. The price of petrol in the market comes down. Consumers Income falls during government imposed Lockdowns due to health concerns. Given below is the Supply Schedule of Nestle Milk per liter:Price of Milk per liter (in Rs) 100 200 300 400Quantity Supplied per day in liters (in 1000s) 100 200 300 400Use the above data to illustrate the Supply Curve in a graph with complete labels. Assume Rs. 200 is the original price of milk per liter and 200,000 liters is the original quantity of supply. Suppose the price rises from Rs. 200 to Rs. 300, what will be the amount of Quantity Supplied?Illustrate the impact of (C) on the graph. Is this a movement along the supply curve or shift of the curve?Question 42 Using a conventional demand and supply framework, answer the following question. Both demand and supply decrease, but demand decreases less than supply. Then the new equilibrium point of the old equilibrium point, the equilibrium price and the equilibrium lies to the quantity (Hint: Draw the graph with the shifts and the directional arrows as we did in class. Do not forget labelling.) bottom right, decreases, decreases bottom left, decreases, decreases top right, increases, decreases. top left, increases, decreasesIn each of the following cases, determine how supply or demand shifts and how the equilibrium changes. Select the correct answer in each blank space (_______) a. Smartphones: Microchips used in smartphones become less costly to produce. As a result, the __________________( *Supply of and demand for, *Supply of, or *Demand for) smartphones increase(s), causing the equilibrium price to (*Rise, *Fall, or *Rise, fall or remain unchanged) and the equilibrium quantity to (*Rise, fall or remain unchanged, *Rise, *Fall) b. ALS medical research funds: The ALS ice bucket challenge goes viral, leading to greater awareness of the benefits of and need for ALS research. As a result, the _____________ ( *Supply of and demand for, *Supply of, or *Demand for) ALS research increase(s), causing the equilibrium price (or opportunity cost) of such research to __________ (*Rise, fall or remain unchanged, *Rise, *Fall) and the equilibrium quantity to __________ (*Rise, fall or remain…
