Describe the relationship between the price of old (or existing) bonds and interest rates. Is the real rate of interest way too high? What is the best way to calculate equilibrium interest rate? Explain the relationships among the face value of a bond, the price of a bond, and...
Explain the concept of "Equilibrium Point" based on quantity of demand and supply when the price change in the What makes demand curves elastic or inelastic? The demand for aspirin at currently prevailing prices seems to be highly inelastic. What do you think would happen to the elasticity of...
Price Floor' is the minimum price fixed by the government below which sellers cannot sell their product. Since this price is normally set above the equilibrium price, there is excess supply in the market. As the seller may not be able to sell all that he
Assume a consumer with the utility function U = U(X,Y) = (X + 2)(Y + 1) and the budget constraint is $95 = $10X + $5Y Find the amounts of goods X and Y the consumer will purchase in equilibrium. Imagine that a consumer's utility function is U(x,y)=x^{.5}y^{.5}. ...
Explain what is a multiplier in economics. Can you explain a difficult macroeconomics concept in simple terms? In economics, differentiate between free market and market equilibrium. In economics, what is a budget constraint? Write the definition of economics. What are the main elements of the def...
Log In Sign Up Subjects Business Economics Economic equilibrium Define: - Marginal Cost - Perfect Competition - Market Price.Question: Define: - Marginal Cost - Perfect Competition - Market Price. Supply and Demand: It is an economic concept whereby the price of products is determined by...
How can the concept of price ceilings and price floors be applied and analyzed in the foreign exchange market? When a price ceiling is non-binding, the ceiling price is ___ the equilibrium price; when a price ceiling is binding, the ceiling price is ___ the equilibrium p...
How does the equilibrium price and quantity (in general) compare between perfect competition and monopolistic competition? How is "Perfect" Competition defined? Is it really "Perfect"? Can you think of any examples that more or less operate this way? Which of the conditions required for a ma...
Define supply, demand, and equilibrium price, and explain their relationship with each other. Do increases in aggregate supply lead to increases in aggregate demand? In addition to the demand curve, what else must be considered to determine consumer surplus?
In economics, clearly explain what is meant by the following term "Market Value." Describe the effect of the following government policy on market equilibrium: Restrictions on international trade What is the purpose of calculating equilibrium price in economics? Explain macroeconomic equilibrium with an...