The following are the equations for the supply and demand curves in the market for weezils:
Demand:
Qd= 20?2P
Supply:
Qs= 5 + 3P
where Qdis the quantity demanded, Qsis the quantity supplied, and P is the price per weezil in dollars.
Refer to Exhibit 4-1. According to the data given, the equilibrium price of a weezil is
A. $3.
B. $5.
C. $11.
D. $14.
Answer: A
You might also like to view...
To find the market demand curve for in-line skates, we must
A) add the quantities demanded at every price and every income by every buyer of in-line skates. B) add the quantities demanded at prices that all buyers can afford to pay. C) take account of the skate buying plans of all actual and potential buyers in all possible situations. D) sum horizontally the individual demand curves of all the buyers. E) None of the above answers is correct because we need also to take account of the supply of in-line skates.
Refer to the figure above. What is the optimal number of machines rented if the market rental price is $5 per month?
A) 20 machines B) 40 machines C) 80 machines D) 100 machines
Consider the Taylor rule for the target of the federal funds rate
Suppose the equilibrium real federal funds rate is 2 percent, the target rate of inflation is 3 percent, the current inflation rate is 3 percent, real GDP equals potential real GDP, and the weights are 1/2 for the inflation gap and the output gap. Using the Taylor rule, what does the target for the federal funds rate equal? Next, if the Federal Reserve lowered the target for the inflation rate to 1 percent, how much would the target for the federal funds rate change?
Assuming a required reserve ratio of 10% and the Fed purchased $1 million worth of mortgage-backed securities, make use of the simple deposit multiplier to determine how much checking deposits would change
A) increase by $1 million B) increase by $10 million C) decrease by $1 million D) decrease by $10 million