Suppose an individual inverse demand curve is given as P = 2 - 1/2 qi, where qi is the quantity demanded by individual i. There are 50 individual consumers with this identical, individual inverse demand curve. Solve for the market demand curve
What will be an ideal response?
Solve for the individual, regular demand curve, qi = 4 - 2P. Multiply the individual demand curve by 50 to yield QD = 200 - 100P.
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If output equals 50,000 and full employment real GDP equals 45,000, then this economy has a(n)
A. demand gap. B. employment gap. C. recessionary gap. D. inflationary gap.
Compare perfect competition and monopolistic competition. In what ways are they similar? In what ways are they different?
What will be an ideal response?
A classical model of the economy predicts
A) full employment in the long run. B) a 15 to 20 percent unemployment level whenever the economy is in equilibrium. C) the same unemployment rates as the Keynesian model. D) cyclical changes in the unemployment rate.
Which of the following decisions are complicated by the value of money changing over time?
A. Buying a $100 concert ticket B. Buying a $100 stock C. Buying a $100 sweater D. Buying a $100 blender