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- ackad to dorive ouctraint whin Hhire is inflatin. Let's in hredune inflantin into cheice modal that O While the price of Ġ remains $1, the perice c, becomes $ (i+ i). of O Due to inflotion, the seand-penind Lecomes Ihlome 4 (i+i)M, Therefore (u=Mo, 62=M, ). the bujet' Limi. is o The in fered, rate for beth loons emnd dapaeit is still deneted by r. Lalrita don oral budy at cowkaiml in * to the ih tor tamp- way simi lan Own vetr M, + Ma P Held ing r contoud, wil Hhere be more axplam. constant, will Hure be more boroniners higher inflation rate (CiA)? PleaeDetermine showing all calculations which supermarket will be the best value for moneyHow should an increase in inflation affect the interest rate on an adjustable-rate mortgage?
- 6. A traded commodity has highly relation ship price- demand of 9=120-p. - 120 - Jp. a.) Constru ct the Elaslicity func tion, E= sim plity and b.) Find the Elas ticity at of Ĥ 8100 in fractions (No decimals) c.) De termine the Revenues Price where are Maximized.As more and more businesses accept credit cards, the O supply of money decreases. O demand for money decreases. O quantity of money demanded decreases. O quantity of money demanded increases. O demand for money increases.Consuime's preferen co Teisme (6) c an comsump over cmd fimetion: u (l,c) - LnL tc. Ho Budget coutaint be written w (I-i) Can € = E + @ solve har famand for Leivine é How foer here Supply decision dapend the wage rate w ī-l =laber Supply Prire NB ) to Wage rate non-laber jn 1ome
- Interest rate B) $480. C) $460. D) $440. 2% 4 6 8 10 Transaction demand for money $220 220 220 220 220 Asset demand for money $300 280 260 240 220 Money supply $460 460 460 460 460 1. At equilibrium in the above market for money, the total amount of money demanded is: A) $500.P№ P 12- 10+ 8 9 4 2 Supply Demand 10 20 30 40 50 60 70 O Using the graph above, what is the total value consumers are willing and able to pay? Round to 2 decimal points. Do not include $ %rom California to New York, legislative bodies across the United States are considering eliminating orreducing the surcharges banks impose on non-customers, who make $14 million in withdrawals from otherbanks’ ATM machines. On average, non-customers earn a wage of $26 per hour and pay ATM fees of $3.25per transaction. It is estimated that banks would be willing to maintain services for 6 million transactionsat $1.50 per transaction, while non-customers would attempt to conduct 22 million transactions at thatprice. Estimates suggest that, for every 1 million gap between the desired and available transactions, atypical consumer will have to spend an extra minutes traveling to another machine to withdraw cash.(a) Based on this information, what would be the nonpecuniary cost of legislation that would place a$1.50 cap on the fees banks charge for non-customer transactions?(b) What would be the full economic price of this legislation?(c) Using a graph, illustrate the situation described…
- 3. It is a hot day, and Nina is thirsty. Here is the value, in money terms, she places on a bottle of lemonade:Value of first bottle £7Value of second bottle £5Value of third bottle £3Value of fourth bottle £1(i) From this information, derive Nina’s demand schedule. Graph her demand curve for bottled lemonade.(ii) If the price of a bottle of lemonade is £4, how many bottles does Nina buy? How much consumer surplus does Nina get from her purchases? Show Nina’s consumer surplus on your graph.(iii) If the price falls to £2, how does quantity demanded change? How does Nina’s consumer surplus change? Show these changes on your graph.5. a) The table shows the prices of fruit purchased by the typical college student from 2001 to 2004. What is the amount spent each year on the "basket" of frult with the quantities shown in column 2? 2003 Items Qty. 2001 2002 2004 Amount Amount Amoun Price Amount Price Price Price t Spent Spent Spent Spent $0.75 $0.25 $0.70 $0.85 $0.25 $0.90 $0.88 $0.29 $0.95 Apples 10 $0.50 $0.20 $0.5 $2.00 12 2. Grapes Raspberries 1 Total Price Index Inflation 2.05 2.13 Rate b) Construct the price index for a "fruit basket" in each year using 2003 as the base year. c) Compute the inflation rate for fruit prices from 2001 to 2004.suppose the price of orange juice rises and the apples falls. what would you expect ti happen to the price and quantity of apple juice? why would the equilibrum quanity increase while the impact onbthe equilbrum price be uncertain?
