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 67 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
YES! Correct, THANKS for helping me on my review

phuda

  • Member
  • Posts: 348
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

If you could remove all of your skin, it would weigh up to 5 pounds.

This 11-month old girl demonstrates one of the abilites of a child of this age group - creating a to This 11-month old girl demonstrates one of the abilites of a child of this age group - creating a to
Nonlinear increase in saturation vapor pressure with increase in temperature. Nonlinear increase in saturation vapor pressure with increase in temperature.
Effect of an Increase in Technological Progress Effect of an Increase in Technological Progress
Comparing Productivity Comparing Productivity
Productivity in Temperate Oceans – Northern Hemisphere Productivity in Temperate Oceans – Northern Hemisphere
The karyotype of an XYY male. Affected individuals are usually taller than normal, and some, but not The karyotype of an XYY male. Affected individuals are usually taller than normal, and some, but not
Video: Introduction to Photolithography - WC, BLF, PA, Hard and Soft baking

For a complete list of videos, visit our video library