34. If the price elasticity of supply is 1.2, and price increased by 5%, quantity supplied would increase by 4.2%. increase by 6%. C. decrease by 4.2%. d. decrease by 6%. a. b. a

Q: because most businesses do not experience inflation as reflected by the market basket used to…

A: CPT refers to the consumer price index which shows the cost of the basket of consumer goods. It is…

Q: You are an Economics consultant at Economics 4U, a small consulting firm that helps its clients to…

A: Income elasticity of demand is defined by change in demand 1% increase in income of the consumer.

Q: "The Fed can perfectly control the monetary base and the money supply" Is this statement true,…

A: The Fed stands for Federal Reserve System. It is the central bank of the country U. It operates with…

Q: The market structure of the local pizza industry is best characterised by monopolistic competition.…

A: A competitive market is a market where there are many buyers and sellers who trade homogeneous…

Q: Long-run growth occurs when an economy: (a) makes use of existing but underutilized productive…

A: Long-run growth refers to an increase in production capacity over a period of time.  Long-run growth…

Q: The following graph gives the demand (D) curve for satellite TV services in the fictional town of…

A: A monopoly firm produces at the intersection of MR and MC curves.  When ATC keeps decreasing as…

Q: FEDERAL RESERVE press release For release at 2:00 p.m. EST BA somewhat but remains elevated. DERAL…

A: The Federal Open Market Committee sets a target rate of interest at which the commercial banks ought…

Q: W h a t   r o l e   d o   f i n a n c i a l   m a r k e t s   p l a y   i n   o u r   e c o n o m y…

A: As per the authoring guidelines, in case of multiple questions asked which are not interrelated,…

Q: Please no written by hand solution Which of the following statements is TRUE? Worldwide markets…

A: Worldwide markets allude to the global exchange of goods, services, and capital among individuals,…

Q: make a graph that shows the marginal cost (MC), marginal revenue (MR), and marginal social benefit…

A: Externality refers to the situation of a person engaging in activities that may influence the…

Q: O Will increase total inve O Will cause less investm Both of in shoun

A: Saving: It refers to that part of the income which is not used in consumption by the consumer. and…

Q: What is the most salient feature of Canada's employment insurance system that sets it's apart from…

A: Employment insurance (EI) refers to a social insurance program in Canada that gives temporary…

Q: A small town has a duopoly in its tattoo market.  Two firms, "Thread the Needle" and "Ink about it"…

A: A market structure where there are only two dominant firms or companies that are competing against…

Q: In short, how is it possible for countries with high and increasing per capita capital stocks to…

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

Q: 3.A firm has production function F(K, L) = 1/4 (K¹/² + L ¹/2). The wage rate is w = 1 and the rental…

A: Production function: F(K,L)=14K1/2+L1/2 Wage w =1 and rent r=3 To find the cost-minimizing input…

Q: Mobile phones and mobile phone technology have generated significant advances in communication. You…

A: The curves that depict the relationship between the price (P) of a good or service and the quantity…

Q: Research and identify two cryptocurrencies, how they have evolved in recent years and how might you…

A: From barter to real currency to digital transactions, money has undergone changes. The change in the…

Q: Consider the Keynesian models of Business Cycles. Suppose you see a recession (drop in output) that…

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

Q: As people in the economy build this now-lower inflation into their expectations, the economy will…

A: A general rise in the cost of products and services over time is referred to as inflation. It…

Q: The market structure of the local pizza industry is best characterised by monopolistic competition.…

A: A Monopolistic competitive market, maximizes its profit by producing its output where Marginal…

Q: WAGE (Dollars per hour) 20 18 16 14 12 10 8 2 0 Supply Demand + 0 50 100 150 200 250 300 350 400 450…

A: A firm’s willingness to pay for each unit of labor it wishes to hire is shown by the labor demand…

Q: 5a. Consider the data in the table below. The inflation rate is 6% and the before-tax market…

A: Formula for the present value is given as: P = F(1+R)tP : present value F : Future value t : total…

Q: 7. A risk-neutral principal hires an agent to work on a project at wage to. The agent's utility…

A: A risk neutral principal or agent is someone who is insensitive to any kind of risk factor that may…

Q: Show the impact of the increase in government purchases on the interest rate by shifting one or both…

A: It is given The hypothetical economy in which households spend $0.50 of each additional dollar they…

Q: Consider a market with an incumbent firm and a new entrant E producing a homogenous product and…

A: This question concerns a market with an incumbent firm and a new entrant competing in quantities to…

Q: Describe Progressive taxation. And Regressive taxation

A: Taxation is the process by which a government or other authority collects money from individuals and…

Q: You are planning to withdraw $1500 at the end of year 4, $2000 at the end of year 6, and $2500 at…

A: Given: Year Cash flow in the year 4 1500 6 2000 8 2500 Interest rate i =10% We have to…

Q: Use the table to determine the discounted payback period using 7% per year Period (n)    Cash flow…

A: The discounted payback period is the method to find the time it takes for an investment to generate…

Q: The maximum total short-run economic profit of the firm with the cost and revenue curves that is…

A: The profit maximization level of output is the level of output at which the Marginal Revenue is…

Q: -Decrease in household and firm expectations of inflation -Increase in household and firm…

A: ***Since you have posted multiple questions, according to the guidelines the first three McQs are…

Q: What is the rationale for international trade? Provide a critical assessment of traditional and…

A: Trade is the exchange of goods, services, or capital between two or more countries or parties. It…

Q: Raytheon wishes to use an automated environmental chamber in the manufacture of electronic…

A: The problem needs us to calculate the actual after tax cashflows which is the cash flow after…

Q: Consider again the economy with a total money supply of $2 million and nominal GDP of $6 million.…

A: Quantity theory of money shows the relationship between the money supply, velocity, price level and…

Q: How much would you have to deposit now, so that you can withdraw of $10000 starting at the end of…

A: Given that: Interest rate = 6%, compounded semi-annually Withdrawal starting at the end of year of…

Q: penod-known as the Dust Bowl-major dust storms caused residents of Kansas to migrate west to such…

A: In economics, land and labor are the two elements of production. Every resource of nature used in…

Q: rature review of Phillip curve theory between Keynesian and monetarist

A: The Phillips Curve theory, named after economist A.W. Phillips, posits an inverse relationship…

Q: The accompanying table shows Tanisha's and Ari's individual marginal benefit of different amounts of…

A: An individual is willing to pay for a public good till his/her marginal benefit associated with that…

Q: Consider the following entry game between an incumbent (I, blue payoff) and an entrant (E, green…

A: Nash equilibrium is the point of a game corresponding to which each participant optimizes his…

Q: The market structure of the local pizza industry is best characterised by monopolistic competition.…

A: Under a monopoly, a single seller faces the entire market demand on his own. Here, the seller…

Q: he current exchange rate is $1.00 = 1.50 Swiss franc.  The exchange rate is expected to be $1.00 =…

A: An exchange rate refers to the value of one currency expressed in another currency. It represents…

Q: ou are considering investing $2,000 (n=0) at a simple interest rate of 11% annually for five years…

A: Investment plan 1: $2000 at n=0 at 11% simple interest rate for five years Plan 2: Invest $1500 at…

Q: Consider an economy in the long run. Using the dynamic ADAS model, if the Fed lowers its target…

A: The AD-AS (Aggregate Demand-Aggregate Supply) framework is a macroeconomic model used to analyze the…

Q: Under a fixed exchange rate regime, when the value of the domestic currency decreases, it is called…

A: Under fixed exchange rate regime, exchange rate is determined by the central bank and does not…

Q: Ball 7,5 Meal Meal 4,3 Alice and Xitong are deciding whether to attend a ball or go out for a meal.…

A: Since you have posted multiple MCQs of different topics, we will be solving only the first one. if…

Q: Solve the following and draw the cash flow diagram How much would you have to deposit now, so that…

A: Given:  withdraw of $10,000 starting at the end of year 5 subsequent withdrawals will decrease a…

Q: 5a. Consider the data in the table below. The inflation rate is 6% and the before-tax market…

A: Actual Dollars:The cash money which is in circulation in the economy and these dollars are inflated…

Q: 6. Consider the entry-deterrence game below. The potential entrant moves first and would have to…

A: The decisions and actions that the two parties take in response to one other's actions and potential…

Q: US governments role in business has fluctuated over the centuries. Select all examples below that…

A: Any activity carried out by an individual or organization on a regular basis with the motive of…

Q: 2. ii) Labor demand is determined by the agent using their resource of to fulfill their want of…

A: The total amount of workers (labor) that employers (producers) are willing and able to hire from…

Q: Consider an imaginary price index, the Undergraduate Price Index (UPI), created to represent the…

A: The price index measures the change in price paid by consumers for a particular basket of goods.…