Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Chapter 21, Problem 4MC
To determine
Principal–agent relationship.
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How does the change in consumer and producer surplus compare with the tax revenue?
Considering the following supply and demand equations:
Qs=3P-1 Qd=-2P+9 dPdt=0.5(Qd-Qs)
Find the expressions: P(t), Qs(t) and Qd(t). When P(0)=1, is the system stable or unstable?
If the constant for the change of excess of demand changes to 0.6, this is: dPdt=0.6(Qd-Qs) do P(t), Qs(t) and Qd(t) remain the same when P(0)=1?
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Managerial Economics: A Problem Solving Approach
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