This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The idea that creating incentives for individuals and firms to increase productivity leading to an ... (Read 44 times)

ishan

  • Hero Member
  • *****
  • Posts: 546
on: Jun 30, 2018
The idea that creating incentives for individuals and firms to increase productivity leading to an increase in long-run aggregate supply is
 
  A) the Ricardian equivalence theorem. B) demand-side economics.
  C) supply-side economics. D) consistent with crowding out.

Question 2

Assume that the market for bread is perfectly competitive. The demand for bread is given by the equation: D = 120 - 10P and the market supply for bread is given by: S = 60 + 5P. Determine the equilibrium price and quantity of bread.
 
  What happens if the price of the bread is set at 10 per loaf? What happens if the market price is set at 2 per loaf?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

rnehls

  • Sr. Member
  • ****
  • Posts: 313
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

In a perfectly competitive market, the equilibrium price and quantity of a good are determined at the point where the quantity demanded is equal to the quantity supplied. To determine the equilibrium price and quantity of bread, demand is set to be equal to supply:
D = S
or, 120 - 10P = 60 + 5P
or, 60 = 15P
Therefore, P = 4.
Therefore, the equilibrium price of bread is 4 per loaf. The equilibrium quantity of bread can be determined by plugging the equilibrium price into either the demand equation or the supply equation. The equilibrium quantity, Q = 120 - (10


ishan

  • Member
  • Posts: 546
Reply 2 on: Jun 30, 2018
Excellent

Viet Thy

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Blood is approximately twice as thick as water because of the cells and other components found in it.

Did you know?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

Did you know?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

Did you know?

The most destructive flu epidemic of all times in recorded history occurred in 1918, with approximately 20 million deaths worldwide.

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Primary production increases with an increase in total phosphorus concentration. Primary production increases with an increase in total phosphorus concentration.
Paths taken by honeyguides leading people to bees' nests Paths taken by honeyguides leading people to bees' nests
Areas of differing productivity and diversity in a wetland. (a) Typha dominates core habitats, while Areas of differing productivity and diversity in a wetland. (a) Typha dominates core habitats, while
By middle adulthood, most individuals and established and confident in their careers By middle adulthood, most individuals and established and confident in their careers
The Increase in Divorce The Increase in Divorce
Depictions of the transformations leading to the supercoiling of circular DNA Depictions of the transformations leading to the supercoiling of circular DNA
Video: Neurotransmission at chemical synapses & Excitory and inhibitory potentials

For a complete list of videos, visit our video library