EBK ECON: MACRO4
4th Edition
ISBN: 9781305562097
Author: MCEACHERN
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 9, Problem 3.6PA
Sub-part
A
To determine
the reason for increase in investment expenditures as a result of decline in interest rates when a new plant and equipment is purchased.
- Construction of a new housing
- Increase of inventories
Sub-part
B
To determine
the reason for increase in investment expenditures as a result of decline in interest rates when a new house is being constructed.
Sub-part
C
To determine
the reason for increase in investment expenditures as a result of decline in interest rates when inventories are increased.
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If 17 Ps are needed and no on-hand inventory exists fot any of thr items, how many Cs will be needed?
Exercise 5Consider the demand and supply functions for the notebooks market.QD=10,000−100pQS=900pa. Make a table with the corresponding supply and demand schedule.b. Draw the corresponding graph.c. Is it possible to find the price and quantity of equilibrium with the graph method? d. Find the price and quantity of equilibrium by solving the system of equations.
1. Consider the market supply curve which passes through the intercept and from which the marketequilibrium data is known, this is, the price and quantity of equilibrium PE=50 and QE=2000.a. Considering those two points, find the equation of the supply. b. Draw a graph for this equation.
2. Considering the previous supply line, determine if the following demand function corresponds to themarket demand equilibrium stated above. QD=.3000-2p.
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