Answered: Calculate the nominal rental price of…

Calculate the nominal rental price of capital Md=(.67Y-0.5r)P Ms=100 P= 0.96 Y=150 r= -6 supply of capital (Ks) = 100 Demand for capital (Kd)= 200-4(R/P) Real rental price of capital (R/P)= 25

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Calculate the nominal rental price of capital

Md=(.67Y-0.5r)P

Ms=100

P= 0.96

Y=150

r= -6

supply of capital (Ks) = 100

Demand for capital (Kd)= 200-4(R/P)

Real rental price of capital (R/P)= 25

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