Question
If demand is more elastic than supply, who will get the
larger share of benefits?Solution
Consumers - If demand is more elastic than supply, consumers tend to reap larger benefits, such as paying lower prices, from transactions because they have more substitutes available and can respond more to price changes.
Consider a closed economy wherein
C = 0.8 Yd  , t = 0.25 , I = 900 – 50i , G = 800, L = 0.25 Y – 62.5i , M/P = 500
Where in Yd = Di...
GDPf = Gross Domestic Product at Factor Cost; GDPm = Gross Domestic Product at Market Price; NNPf = Net National Product at Factor Cost; C = Consumption...
Let X1, X2 and X3 are three (Pairwise) uncorrelated random variables. The mean & variance of each variable is 0 and 3, respectively. Find the correl...
Suppose your data produces the regression result y = 10 +3x. Scale y by multiplying observations by 0.9 and do not scale x. The new intercept and slope ...
The regression equation is Y = β1X1i + ui and following is the sample,
Demand curve of a Monopoly firm is Q=1000-50P and the Total cost of production is TC = 50+2Q. Profit maximizing output for the firm is
In a small open economy with a floating exchange rate, the supply of real money balances is fixed and a rise in government spending ______
A and B constitute a random sample of size 2 from normal population with the mean µ and variance α2, find the efficiency of (A+2B)/3
GDPf = Gross Domestic Product at Factor Cost; GDPm = Gross Domestic Product at Market Price; NNPf = Net National Product at Factor Cost; C = Consumptio...
If a country's Terms of Trade (ToT) improve, what is the immediate and direct effect on that country's welfare?
