9 Multiple Choice Questions: Q1) In terms of aggregate supply, in the immediate short run: A) both input prices and output price are fixed. B) nominal wages in variable. C) real output is fixed. D)the price level is variable.
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Multiple Choice Questions:
Q1) In terms of
A) both input prices and output price are fixed.
B) nominal wages in variable.
C) real output is fixed.
D)the price level is variable.
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- Q) Macroeconomics would be concerned with a) the effects of wage increases on steel manufacturers. b)the effects of a tax on beer. c)the effects on individual consumers of changes in the price of gasoline for a business. d)implications of changes in unemployment and inflationVariables typically included in a multivariate supply function (other than the price and quantity of the item the supply function represents) are prices of other goods that use similar input resources for production, expectations, the number of suppliers, techniques of production, taxes and subsidies, and prices of input resources, weather. Please answer the following questions about the affect changes in other variables might have on the supply of the item. These changes will either cause supply to increase (shift right) or decrease (shift left). Use either word as applicable, for the short answer. If there is an increase in the number of producers of the item being considered, then the supply of it is likely to: A tariff is a form of trade restriction (that behaves much like a tax). Suppose the United States removes a high tariff on imported broccoli that had been in effect for a long time. How should this affect the supply of imported broccoli? A decrease in a…Variables typically included in a multivariate supply function (other than the price and quantity of the item the supply function represents) are prices of other goods that use similar input resources for production, the number of suppliers, techniques of production, taxes and subsidies, prices of input resources, weather, and expectations. Please answer the following questions about the affect changes in other variables might have on the supply of the item. These changes will either cause supply to increase (shift right) or decrease (shift left). Use either word as applicable, for the short answer. 1. If the market price of gasoline returns to the near $4.00 per gallon level then demand for gas-gulping large autos is likely to decrease and manufacturers of these autos are likely to _____________ their supply: 2. A relative increase in the productivity of the technology used to produce the item being considered is likely to _____________________ its supply. 3. Hailstorms have pelted…
- Consider an item that is ordered on a monthly basis. The daily demand for the item is200 and the lead-time for supply is 7 working days. A month consists of 25 workingdays. the cost of ordering is USD 100 per order and the cost ofcarrying inventory is USD 10 per unit per year of inventory.a. What will be the cost of the existing plan of ordering inventory?b. What will be the economic order quantity (EOQ)?c. What will be the new cost of the plan if the organization chose to order as perEOQ?2. An economist is interested in the variation of the price of a single product. It is observed that a high price for the product in the market attracts more suppliers. However, increasing the quantity of the product supplied tends to drive the price down. Over time, there is an interaction between the price and supply. The economist has proposed the following mode, where Pn represents the price of the product at year n, and Qn the quantity: (a) Explain the significance of the constants 500 and 100 in the proposed equation. (b) Explain the significance of the signs of the constants -0.1 and 0.2. (c) Simulate the system using the following initial conditions (plot the trajectories) and predict the long term behavior of the dynamical system. Po 100 and Qo= 500 • Po= 200 and Qo = 500 ● Po 100 and Qo = 600 Po 90 and Qo = 400 [Pn+1 = Pn -0.1 (Qn - 500) [Qn+1 =Qn +0.2 (Pn - 100) ●Your company sells wristwatches in three separate markets: China, Japan and Korea. The demand curves are 9c = 50 9j = 75 - - qk 100 4 2 Pc P₁ · Pk. a) Calculate and plot the inverse demand curve for each market. b) Calculate your aggregate demand curve. c) Calculate and plot your inverse aggregate demand curve.
- =- 4+ 40 = 36 %3D Print Given the following equations: References Demand. QD 90 - P %3D Supply. Q = 10 + 15P %3D Solve for the equilibrium price 'P' and quantity (Q: QD = QS): P* = $ QD = QS = Q =[ units Mc Graw Hill Prev of 3 MacBook AirExplain the notions of market equilibrium/disequilibrium and underlying factors influencing demand and supply and resultant changes to market equilibrium prices and quantity for normal goods. What are the policy implications for the firm in terms of change in market equilibrium prices, quantity, and total revenues in the light of the following market conditions? (a) Rise in income level in the economy when goods supply is price inelastic and elastic. (b) Increase in costs of inputs such as labour when goods demand is price inelastic and elastic.Plan production for a four-month period (February through May). Given information: For February and March, you should produce to exact demand forecast. For April and May, you should use overtime and inventory with a stable workforce; stable means that the number of workersneeded for March will be held constant through May. However, government constraints put a maximum of 5,000 hours of overtime labor per month in April and May (zero overtime in February and March). If demand exceeds supply, then backorders occur. There are 100 workers on January 31. You are given the following demand forecast: February, 80,000; March, 64,000; April, 100,000; May, 40,000. Productivity is four units per worker hour, eight hours per day, 20 days per month. Assume zero inventory on February 1. Costs are hiring, $50 per new worker; layoff, $70 per worker laid off; inventory holding, $10 per unit-month; straight-time labor, $10 per hour; overtime, $15 per hour; backorder, $20 per unit.
- The demand function for a product shifts from DD: p = – 0.47q + 188 to D´D´: p = – 0.47q + 164.5 Compute the horizontal and vertical shifts and write interpretive descriptions of these numbers.These are the 4 sub sections of one questions. Please answer asap Although there is demand in the local market, much of the demand for Bangladeshi Jute output has come from other countries. We are told that total demand is Q = 3583 - 301P; where, domestic demand is Qdd = 1417 - 104 P; export demand is Qe = 2166 - 197 P supply is Qs = 1767 + 202 P. (Note: total demand, Q = Qdd + Qe) (a) What is the equilibrium market price of jute? (b) Suppose, due to the recent pandemic, the export demand for jute falls by 50 percent. What happens to the price of jute in Bangladesh? (c) Now suppose the BD government wants to buy enough jute to raise the price to $5.800000000000001 per unit. With this drop in export demand, how much jute would the government have to buy? (d) How much would this cost the governmentgovernment?Question 7 Price Domand, Dy Quantity Refer to the figure above. A decrease in the expected future price of the product would be represented by a movement from OA) A to B B) B to A O CD1 to D2. OD) D2 to D1