ECONOMICS W/CONNECT+20 >C<
20th Edition
ISBN: 9781259714993
Author: McConnell
Publisher: MCG CUSTOM
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Question
Chapter 42, Problem 6DQ
To determine
The returns on capital in IACs and DVCs.
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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.
F2
80
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5
6
F6
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F7
* 8
&
27
DII
8
F8
F9
F10
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W
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G
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Chapter 42 Solutions
ECONOMICS W/CONNECT+20 >C<
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- Florin and Guilder are two countries separated by a narrow sea. They use currencies called, respectively, the Flop and the Gulp. Suppose the nominal exchange rate is 20 Flops per Gulp. A Guilderian trader buys a 120 Flop barrel of Florish pickles by exchanging 6 Gulps, and a Florish trader buys a 4 Gulp crate of Guilderian apples by exchanging 80 Flops. Then the Gulp depreciates to 10 Flops per Gulp. Instructions: Enter your answers as whole numbers. How much must the Guilderian pay for the same 120 Flop barrel of pickles? Gulps How much must the Florish trader pay for the same 4 Gulp crate of apples? Flopsarrow_forwardSuppose the nominal exchange rate is 5 Flops per Gulp. A Guilderian trader buys a 40 Flop barrel of Florish pickles by exchanging 8 Gulps, and a Florish trader buys a 10 Gulp crate of Guilderian apples by exchanging 50 Flops. Then the Gulp appreciates to 10 Flops per Gulp. What price must the Guilderian pay for the same 40 Flop barrel of pickles? Gulps How much must the Florish trader pay for the same 10 Gulp crate of apples? Flopsarrow_forwardSuppose the nominal exchange rate is 0.25 Flops per Gulp. A Guilderian trader wants to buy a barrel of Florish turnips for 20 Flops. How many Gulps must he convert to get that many Flops?arrow_forward
- 3. With 17,508 islands, 700 languages, 58 active volcanoes, Indonesia is a dream place. Your company, located in the United States, specializes in importing electrical equipment from Indonesia. In 2023, the United States imported a total of $4.63 billion of electrical and electronic equipment from Indonesia. As of 2024, the average currency exchange rate between the U.S. dollar and Indonesian Rupiah is 1 U.S. dollar to 15,458 Rupiah. However, the exchange rate between the U.S. dollar and the Rupiah has been declining for the past 3 months. Basically, the U.S. dollar continues to depreciate against the Rupiah. While chilling in your living room with your friends and watching the evening news, you hear a reporter state the following: "Due to stubborn high inflation in the United States, the central bank decided to raise the interest rate to control the growth of inflation." The next day, you shared that news with your team at work, and one of teammates seemed confused because she did…arrow_forward1. 1800 tons of pomegranates a year is a lot of sweetness! Summertime is approaching, and you decide to spend your summer vacation with your Aunt Zahra who lives in Jalalabad. Jalalabad is one of the major cities in Afghanistan and is known for its rich cultural heritage. It also has economic importance and is especially well-known for its luscious fruits, such as pomegranates, grapes, and mulberries, and also for its beautiful mountains. Your plan is to travel around while there visiting national parks and local villages and to purchase locally made gifts for your family and friends who live in the United States. Part of your trip plan is to figure out how much money you will need to bring with you to Afghanistan. You learned that the exchange rate is 71 Afghan Afghani for 1 US dollar. Now, you are one month away from your departure time to Jalalabad, and as you were surfing the net to learn about the country and to learn a few greeting words in Afghani, you came across a recent…arrow_forwardAn economy originally operates at the full employment output level. Suppose the economy suddenly experiences a rapid growth in aggregate demand. a. With the aid of an AS-AD diagram, explain why there will be inflationary pressure in the short run. b. suppose the government does not intervene. Using the same diagram in part (a) and with reference to the market adjustment mechanism from the short run to the long run, explain whether the inflationary pressure can be relieved in the long run. C. With the aid of another diagram, suggest ONE fiscal policy that can deal with the inflation. Suggest THREE methods that the government can use to promote economic growth in the long run.arrow_forward
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