MACRO ECON 6
6th Edition
ISBN: 9780357689820
Author: MCEACHERN
Publisher: CENGAGE L
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Question
Chapter 14, Problem 2P
To determine
To calculate:
The value of M1 and M2 using the given information.
Concept Introduction:
Money supply in the economy is measured through money aggregates. Apart from the currency notes and coins, there are many ways in which the money supply takes places in the economy. They form a part of the narrow definition of money, M1, and the other part is the broader definition of money supply, M2.
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HW Ch5
Calculate the daily total revenue when the market price is $180, $160, $140, $120, $100, $80, $60, and $40 per bippitybop. Then, use the green
point (triangle symbol) to plot the daily total revenue against quantity corresponding to these market prices on the following graph.
2
@
3840
3520
3200+
2880
2560+
2240
TOTAL REVENUE (Dollars)
1920
1600
1280
960 +
640+
0
0 8
16
24
32
40 48 56
64
72
80
QUANTITY (Bippitybops per day)
Total Revenue
?
According to the midpoints formula, the price elasticity of demand between points A and B on the initial graph is approximately .
Suppose the price of bippitybops is currently $60 per bippitybop, shown as point A on the initial graph. Because the price elasticity of demand between
points A and B is
, a $20-per-bippitybop decrease in price will lead to
MacBook Air
in total revenue per day.
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