# Economics

## Consider the supply and demand equations: QSt = 0.4Pt-1-5

Consider the supply and demand equations: QSt = 0.4Pt-1-5 QDt = -0.8Pt + 55 a/ Assuming that the equilibrium conditions prevail, find an expression for Pt and Qt when P0= 75; b/ Is this system stable or unstable, explain why? EXPERT ANSWER

## Assume that the functions of a demand curve and of a supply curve of a small country M for commodity X are Dx = 130 – Px and Sx = -10 + Px respectively. The unit price of commodity X imported from the rest of the world is 10 USD in the condition of the free trade. Draw the graph and calculate the increase of the producer’s surplus, the decrease of the consumer’s surplus, and the government revenue if the country M would impose the import tariff at the rate of 20% on the commodity X imported from the rest of the world?

Assume that the functions of a demand curve and of a supply curve of a small country M for commodity X are Dx = 130 – Px and Sx = -10 + Px respectively. The unit price of commodity X imported from the rest of the world is 10 USD in the condition of the …

## Company A plans to invest in the production of refractory bricks. Equipment and factory are invested once. Project life cycle follows the depreciation time of equipment. Total investment of the project is owner’s equity. Investment in factory is 2,300,000,000. Equipment is as follows:

Company A Plans To Invest In The Production Of Refractory Bricks. Equipment And Factory Are Invested Once. Project Life Cycle Follows The Depreciation Time Of Equipment. Total Investment Of The Project Is Owner’s Equity. Investment In Factory Is 2,300,000,000. Equipment Is As Follows: Variable cost per ton of finished brick: Cost of raw materials is …

## An asset costs \$745,000 and will be depreciated in a straight-line manner over its three-year life. It will have no salvage value. The lessor can borrow at 6% and the lessee can borrow at 9 percent. The corporate tax rate is 21 percent for both companies.

An asset costs \$745,000 and will be depreciated in a straight-line manner over its three-year life. It will have no salvage value. The lessor can borrow at 6% and the lessee can borrow at 9 percent. The corporate tax rate is 21 percent for both companies. a. How does the fact that the lessor and …

## 2. Consider an economy that produces and consumes bread and automobiles. In the following table are data for two different years. 2000 2010 Good Quantity Price Quantity Price Automobiles 100 \$50,000 120 \$60,000 Bread 500,000 \$10 400,000 \$20 a.Computer the GDP b.Using the year 2000 as the base year, compute the following statistics for each year: nominal GDP, real GDP, the implicit price deflator for GDP.. c. How much have prices risen between 2000 and 2010? d. Suppose you are a senator writing a bill to index Social Security and federal pensions. That is, your bill will adjust these benefits to offset changes in the cost of living. Will you use the GDP deflator or the CPI? Why?

2. Consider an economy that produces and consumes bread and automobiles. In the following table are data for two different years.2000 2010Good Quantity Price Quantity PriceAutomobiles 100 \$50,000 120 \$60,000Bread 500,000 \$10 400,000 \$20a.Computer the GDPb.Using the year 2000 as the base year, compute the following statistics for each year: nominal GDP, real GDP, the …

## 9. The Warren & Smith Company manufactures commercial zippers of two kinds, kind X and kind Y. Its production department estimates that the average cost function of the firm is:

9. The Warren & Smith Company manufactures commercial zippers of two kinds, kind X and kind Y. Its production department estimates that the average cost function of the firm is: AC=X^2+2Y^2-2XY-2X-6Y+20 (a) The manager of the firm would like to know the level of output of zipper X and zipper Y at which the average …

## You are employed as a Business Strategic Executive at the Fridge Manufacturing and Export Company. This company is in the business of exporting fridges to overseas markets. The company faces external shocks arising from high global oil price (from a transport point of view and COVID-19 related constraints. The volatile world market pushes the price for fridges higher than before and remains generally high for almost a year. Using a graph that depicts market forces that underlies the global market for fridges, discuss the short-run increased price effects on exports for fridges.

You are employed as a Business Strategic Executive at the Fridge Manufacturing and Export Company. This company is in the business of exporting fridges to overseas markets. The company faces external shocks arising from high global oil price (from a transport point of view and COVID-19 related constraints. The volatile world market pushes the price …

## 1. (3 Points) Suppose that the UAE government has a budget deficit and decides that the economy is closed. Can you use the savings-investment spending identity to explain how the budget deficit will affect investment spending in the UAE? 2. (3 Points) Suppose the UAE government decides to open up its economy and balance its budget. Since the economy is open, there is also a positive capital inflow from foreign citizens. Use the savings-investment spending identity to explain how these developments affect investment spending in the UAE?

1. (3 Points) Suppose that the UAE government has a budget deficit and decides that the economy is closed. Can you use the savings-investment spending identity to explain how the budget deficit will affect investment spending in the UAE? 2. (3 Points) Suppose the UAE government decides to open up its economy and balance its …

## Arthur Burton established Astro Airlines in 1980; two years after the airlines were deregulated. Burton’s vision for the new airline has two key elements. First, the airline would provide low?cost, no?frills service to people who formerly could not afford to travel by air. Second, the airline would have a novel type of organization that provided a better way for people to work together, thereby unleashing their creativity and improving productivity. Burton was a dynamic, emotionally stirring speaker with a kind of evangelical fervor, and he took advantage of every opportunity to teach and affirm his vision. Many employees regarded him as an inspirational leader who made you believe that you could do anything. The climate at Astro Airlines in the initial years was one of enthusiasm, excitement, and optimism.

Arthur Burton established Astro Airlines in 1980; two years after the airlines were deregulated. Burton’s vision for the new airline has two key elements. First, the airline would provide low?cost, no?frills service to people who formerly could not afford to travel by air. Second, the airline would have a novel type of organization that provided …