I had this as my solution and I was told that it was wrong.

Q: Suppose the Income elasticity of demand for toys Is -0.8. This means that Multiple Choice a 6…

A: The income elasticity of demand is an economic measure of how responsive a good or service's…

Q: Because of product differentiation, a firm in monopolistic competition Is able to restrict the entry…

A: Under monopolistic competition, there are large number of buyers and sellers selling differentiated…

Q: Personal Consumption Expenditures $400 Government Purchases 128 Gross Private Domestic Investment 88…

A: The GDP or the domestic product is the value of all the final goods and services which are newly…

Q: In the following question you are asked to determine, other things equal, the effects of a given…

A: Answer: Correct option: A (increase D, increase P, increase Q) Explanation: The determinant here is…

Q: Consider a hypothetical country in which, initially, real GDP equals potential GDP. Suppose that the…

A: In an economy, the potential GDP refers to the maximum level of output that can be generated…

Q: Effective Rate of Protection Given the following information for industry X in country A, and…

A: The Effective Rate of Protection (ERP) is a measure used in international trade economics to assess…

Q: 4. A monopoly has a production function given by y(x,,x, ) = x}x3. The prices of output and 1…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: How does New Keynesian and early Keynesian differ? What are the possible explanation for this…

A: The two basic school of economic reflecting two major views are: Classical economics and Keynesian…

Q: Answer the question based on the glven supply and demand data for wheat. Bushels Demanded Price Per…

A: The demand curve is downward sloping in the case of a normal good and it is upward sloping in the…

Q: Tim lives in Dallas and runs a business that sells pianos. In an average year, he receives $793,000…

A: Implicit cost is the foregone income that could have been earned if resources were invested…

Q: At what rate of return will P become n times as great in n years? Tabulate values from n =2 to n =…

A: *SOLUTION :-

Q: Consider the following equations for supply and demand: P=110-10Q P=9+1Q

A: Marginal benefit alludes to the extra satisfaction or worth got from consuming another unit of a…

Q: The figure below shows a hypothetical market for cigarettes. Price $16.00 $15.00 $14.00 $13,00…

A: The tax creates a wedge between the what the buyers pays for the goods and services and what the…

Q: sing the price to charge consumers. There are no capacity constraints. Consumers purchase the firm…

A: Under the Bertrand model, firms compete the prices. The price keeps on declining until it becomes…

Q: In the context of energy supply, describe how the existence of a negative production externality may…

A: The word externality explains an expense or a welfare that occurs from the manufacturing or…

Q: United States Mexico Corn (millions of ton) 50 40 Potatoes (millions of tons 10 5 According to the…

A: The Absolute advantage refers to the economic condition where a producer can deliver or produce good…

Q: What area represents the loss of producer's surplus after free international trade? A. CHGF B. AEG…

A: From the given diagram, Pre-trade :- Domestic price = H Consumer surplus = area of ∆ACH Producer…

Q: Which of the following is an example of allocative inefficiency? O A. Consumers place positive value…

A: Allocative efficiency is where the marginal cost of producing an additional good is equal to the…

Q: Answer the question based on the table below showing the marginal utility schedules for product X…

A: A person can maximize his utility at the point where the marginal utility per dollar derived from…

Q: Which of the following is CORRECT? Select one: a. If a firm is technologically efficient, it is…

A: To be efficient, you have to have to bear the cost of the process. What could be a root cause of…

Q: QUESTION 1 For the utility function U = Qx0.41Qy(1-0.41) and the budget 129 = 8Qx + 8Qy find the…

A: Utility maximization problem: With the given prices and the income, a consumer chooses his…

Q: According to you, which one is the most important development indictor? Provide justification to…

A: Development indicators are Usually a mathematical proportion of Quality/standard of living in a…

Q: (a) Calculate GDP using the Income and Expenditure Approach. (all figures are in billions of…

A: Since you have posted multiple questions as per the guidelines we can solve only the…

Q: An expansionary fiscal policy can increase the level of aggregate demand by reducing corporate tax…

A: The term "fiscal policy" refers to a government's approach to influencing the state of the economy…

Q: 8. Short-run and long-run effects of a shift in demand Suppose that the turkey industry is in…

A: The short run is a time span during which at least one input's amount is constant while the…

Q: As trading takes place, trading partners become independent interdependent allies sworn enemies

A: Trading: The economic activity which includes buying and selling of goods and services between…

Q: You want to buy a $30,000 car. You can make a 10% down payment, and will finance the balance with a…

A: Loan amount refers to an original principal on a new loan taken or given . It can also be the…

Q: 7. The long-run supply curve in different cost industries The following graph shows the market for…

A: The equilibrium price in the market is determined at the point of intersection between the demand…

Q: the answer was wrong

A: Probability hypothesis is the underpinning of factual science, giving a numerical method for…

Q: No International Trade With international trade, there will be a world price for a box of contacts…

A: When there is no trade taking place in the economy, the quantity supplied is equal to the quantity…

Q: You may need to use the appropriate appendix table or technology to answer this question. The…

A: * SOLUTION :-

Q: If there is an increase in the wages of farm workers who harvest coffee beans, the equilibrium…

A: Correct : decreases

Q: Suppose that as the price of Y falls from $15 to $12, the quantity of Y demanded Increases from 200…

A: The Midpoint Method has the benefit of obtaining a similar elasticity between 2 price levels whether…

Q: For the country of Murray, GDP = $2,000, M = $300, and X = $400. What is Murray's level of trade?…

A: Given:  Data for the country of Murray :  GDP = $2000, Exports= $400 Imports=$300

Q: If the Central Bank of Macroland puts an additional 3,000 dollars of currency Into the economy, the…

A: * SOLUTION :-           Given that, New deposit =3000                         Deposit ratio =0.4…

Q: Marginal product refers to the change in output or production divided by the change in variable…

A: Since, marginal product of a input is simply defined as the changes in total product per unit change…

Q: Suppose Faith and Mickey are playing both dictator and ultimatum games. Faith is the…

A: In the dictator game, Faith will act completely out of self-interest. she will keep the entire…