Homework Answers
Answer )
Values of variables P & Q are determined by solving the model, by finding the intersection points of demand & supply curve, thus price & quantity are endogenous variables.
Values of variables Y & C are fixed from outside the model, hence they are exogenous
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C is the production costs, Y is income, P is price.
Please help me to solve...
1. Simple Supply and Demand. Q = 60-10P+2Y Q = 100+5P-15Pc P= Price of pizza Y...
1. Simple Supply and Demand. Q = 60-10P+2Y Q = 100+5P-15Pc P= Price of pizza Y = Aggregate income P = Price of fresh mozzarella a. Identify the exogenous and endogenous variables: b. Solve for p in terms of the exogenous variable. c. Let Y = 10 and Pc = 2. Solve for the equilibrium P and Q d. Suppose Y increases to 12: i. Present a graph showing the impact of the increase in Y(which curve moves which way)....
Need help, please show work. For B, the answer choices are (increase, decrease, or stay the...
Need help, please show work. For B, the answer choices are
(increase, decrease, or stay the same). For C, the potential
answers are in the answer bank.
The Science of Macroeconomics- End of Chapter Problem Assume consumers feel that frozen yogurt is a substitute for ice cream and that the price of frozen yogurt falls. Use this information to answer the three following questions. a. The accompanying supply and demand diagram depicts the market for ice cream. Shift the demand...
15.2.2 15.2.1 Consider the following macroeconomic model: Y = C+1, C = a +by (a >...
15.2.2
15.2.1 Consider the following macroeconomic model: Y = C+1, C = a +by (a > 0, 0<b< 1). The endogenous variables Y and C are national income and consumption respec- tively, and the exogenous variable I is investment. Find the equilibrium values of Y and C in terms of I and the parameters a, b. Find also an expression for the change in Y when I increases from Io to I1, determine its sign and comment on its magnitude....
2. Consider the National Income model given by the following equations. Y-C-I.-G, = 0 C-a-B(Y -...
2. Consider the National Income model given by the following equations. Y-C-I.-G, = 0 C-a-B(Y - T) = 0 T-y-SY=0 where Y, C, and T are endogenous variables and I., G., a, b, Y, 8 are exogenous and B and 8 are positive fractions. Use Cramer’s Rule to find the effect of a change in G, on Y and C.
Problem 4 Consider the production model in chapter 4. Assume that, in the production function, the...
Problem 4 Consider the production model in chapter 4. Assume that, in the production function, the exponents orn capital and labor are respectively 3/5 and 2/5. a) Write down the equation of the model and mark the endogenous and exogenous variables/parameters How does the firm decide how much labor to hire and capital to rent? Show and explain. What does it mean to solve the model? Solve the model reporting all the steps. What is the equilibrium? Define and report...
1. [25 points] A supply and demand model is described by the following equations: Demand: P...
1. [25 points] A supply and demand model is described by the following equations: Demand: P a bQd Supply: P =-c + da Equilibrium: Qd Qs Rewrite the equations of the model in the case where a subsidy of s dollars per unit is placed on production of the good. This means that for every unit that firms sell, the government gives them s dollars. [Hint: if P is the price paid by consumers, what is the price received by...
Solve the ODE/IVP: 4x^2y'' + 8xy' +y=0, y(1)=2, y'(1)=0 Please help me solve this using series....
Solve the ODE/IVP: 4x^2y'' + 8xy' +y=0, y(1)=2, y'(1)=0 Please help me solve this using series. Thanks
You are provided with the following information permining to the supply and demand for widgets price...
You are provided with the following information permining to the supply and demand for widgets price widgets -income (normal) Ps-price of substitutes P -price expect (buyer) number of buyers Pretaste preference P:- price of inputs Ns-number of sellers T-technology PR-price expect (seller) a. Specify the 2 equation model that will solve for equilibrium and P (be sure to correctly indicate the signs (+) or (-) of the parameters)? b. Which of the above variables are exogenous/endogenous? P,Q one endogenous the...
2. Symbolic analysis of supply and demand: The following demand and supply functions provide a relatively...
2. Symbolic analysis of supply and demand: The following demand and supply functions provide a relatively general description of a market: Qs = D + eP where P is the price, Y is a variable denoting income, and Qd and Qs are the quantity demanded and the quantity supplied. The constants A, b, c, D, and e have values greater than zero. (a) Identify the parameters, endogenous variables, and exogenous variables in the above system of equations. (b) Derive expressions...
Consider IS- LM Model Real Sector: Y C+IG C ab (1-t) Y I d-e t-income tax...
Consider IS- LM Model Real Sector: Y C+IG C ab (1-t) Y I d-e t-income tax rate i-rate of interest G Go Money Market: Md Ms Md kY - Ms Mo Mo - exogenous stock of money 1) Setup the system of solutions in general form, with variables vector in the following order: Y, C, I, i; (6 points) 2) Now, suppose we have the following values of parameters: a 10; b 0.7;t= 0.2; d 25; k 0.25;1 0.04; e...
1. Simple Supply and Demand. Q = 60-10P+2Y Q = 100+5P-15Pc P= Price of pizza Y = Aggregate income P = Price of fresh mozzarella a. Identify the exogenous and endogenous variables: b. Solve for p in terms of the exogenous variable. c. Let Y = 10 and Pc = 2. Solve for the equilibrium P and Q d. Suppose Y increases to 12: i. Present a graph showing the impact of the increase in Y(which curve moves which way)....
Need help, please show work. For B, the answer choices are
(increase, decrease, or stay the same). For C, the potential
answers are in the answer bank.
The Science of Macroeconomics- End of Chapter Problem Assume consumers feel that frozen yogurt is a substitute for ice cream and that the price of frozen yogurt falls. Use this information to answer the three following questions. a. The accompanying supply and demand diagram depicts the market for ice cream. Shift the demand...
15.2.2
15.2.1 Consider the following macroeconomic model: Y = C+1, C = a +by (a > 0, 0<b< 1). The endogenous variables Y and C are national income and consumption respec- tively, and the exogenous variable I is investment. Find the equilibrium values of Y and C in terms of I and the parameters a, b. Find also an expression for the change in Y when I increases from Io to I1, determine its sign and comment on its magnitude....
2. Consider the National Income model given by the following equations. Y-C-I.-G, = 0 C-a-B(Y - T) = 0 T-y-SY=0 where Y, C, and T are endogenous variables and I., G., a, b, Y, 8 are exogenous and B and 8 are positive fractions. Use Cramer’s Rule to find the effect of a change in G, on Y and C.
Problem 4 Consider the production model in chapter 4. Assume that, in the production function, the exponents orn capital and labor are respectively 3/5 and 2/5. a) Write down the equation of the model and mark the endogenous and exogenous variables/parameters How does the firm decide how much labor to hire and capital to rent? Show and explain. What does it mean to solve the model? Solve the model reporting all the steps. What is the equilibrium? Define and report...
1. [25 points] A supply and demand model is described by the following equations: Demand: P a bQd Supply: P =-c + da Equilibrium: Qd Qs Rewrite the equations of the model in the case where a subsidy of s dollars per unit is placed on production of the good. This means that for every unit that firms sell, the government gives them s dollars. [Hint: if P is the price paid by consumers, what is the price received by...
You are provided with the following information permining to the supply and demand for widgets price widgets -income (normal) Ps-price of substitutes P -price expect (buyer) number of buyers Pretaste preference P:- price of inputs Ns-number of sellers T-technology PR-price expect (seller) a. Specify the 2 equation model that will solve for equilibrium and P (be sure to correctly indicate the signs (+) or (-) of the parameters)? b. Which of the above variables are exogenous/endogenous? P,Q one endogenous the...
2. Symbolic analysis of supply and demand: The following demand and supply functions provide a relatively general description of a market: Qs = D + eP where P is the price, Y is a variable denoting income, and Qd and Qs are the quantity demanded and the quantity supplied. The constants A, b, c, D, and e have values greater than zero. (a) Identify the parameters, endogenous variables, and exogenous variables in the above system of equations. (b) Derive expressions...
Consider IS- LM Model Real Sector: Y C+IG C ab (1-t) Y I d-e t-income tax rate i-rate of interest G Go Money Market: Md Ms Md kY - Ms Mo Mo - exogenous stock of money 1) Setup the system of solutions in general form, with variables vector in the following order: Y, C, I, i; (6 points) 2) Now, suppose we have the following values of parameters: a 10; b 0.7;t= 0.2; d 25; k 0.25;1 0.04; e...
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