Answer: 16 units more than social optimum.
DWL = dead weight loss = (1/2)*(Q* - Q°) 12 =96
Explanation:
Q=1200 - 4P and Q=-240 + 2P
In a free market quantity demand =quantity supplied
1200 -4P = -240 +2P
P =240
Sub P
Q* = 240
Socially optimal quantity is
Marginal social benefit (MSC)= marginal social cost(MSC), including external damage =MEC
MPC= marginal private cost =inverse of supply function
MPC = (1/2)*Q + 120
MEC=12
MSC =(MPC +MEC) = (1/2)Q +120 +12
MSC= MPB where MPB is marginal private benefit = inverse of demand functn
MPB = 300 -(1/4)Q
(1/2)Q + 132 =300 - (1/4)Q
Q° = 224
Difference btw Q* & Q° = 16 units more than social optimum.
DWL = dead weight loss = (1/2)*(Q* - Q°) 12 =96
Answer: it experiences a capital inflow.
Explanation:
A trade deficit is a situation that occurs when the imports of a country is greater than the exports of the country. This is usually measured in monetary terms. For example, let's say in a certain year, the United States exported $3 trillion in goods and it imported goods worth $4 trillion, th n the trade deficit will be ($4 trillion - $3 trillion) = $1 trillion.
Trade deficit can be caused because of capital deficiency. This will then lead to capital flowing into the country that is experiencing the trade deficit.
A free<span> market economy is one in which the government </span>does<span> not set or control prices, supply, or demand. A </span>laissez-faire<span> economy is one in which transactions between different companies or people are not subject to tariffs, government subsidies, and enforced monopolies.
</span>
<span>
for short-term (typically overnight) loans. when the federal reserve
uses open-market operations to sell government bonds</span>
Answer:
- 29.6%
Explanation:
Data provided in the question:
The elasticity of demand for Google Play apps = -3.7
Number of apps sold per month = 1,000
Percentage increase in the price = 8%
Now,
Elasticity of demand = [ % change in quantity ] ÷ [ %change in price ]
thus,
-3.7 = [ % change in quantity ] ÷ 8%
or
% change in quantity = -3.7 × 8%
or
% change in quantity = - 29.6%
