Essays on Curve

Introduction

The series of recessions that have occurred in the past decades have raised several questions about the effectiveness of the various existing measures of recession, some of which use a comprehensive set of indicators. A number of analysts have stressed that financial market indicators provide a more effective predictions about recession. In this respect the predictive capacity of the bond yield curve have received much attention in recent times. The current discussion sheds some light on the predictive capacity of the yield curve and the associated term spread. Current scenario is studied in terms of the yield curve obtained from present ...

Chapter 10

Question#1: Use Keynesian cross to explain why fiscal policy has a multiplied effect on national income. Answer: The equation for calculation of national income under Keynesian model is Y=C+I+G+(X-M). In this formula, the Y denotes national income, C denotes level of consumption, I denote level of investment done in the economy, G denotes government’s expenditure, X denotes imports, and M denotes imports of an economy. With the help of this formula, the governments drive fiscal policies for the economy. With the help of this equation, it has been said by Keynes himself that when the ...

Introduction

One of the most important part of protein assay is the determination of protein concentration. There are diverse methods used for protein concentration determination, but the most widely used are the spectroscopic methods of analysis or spectroscopy. Spectroscopy usually involves the determination between the correlations of the degree of interaction of light with the analyte, which is the proteins in this particular experiment. There are different types light to analyte interactions and one of these is the absorbance of light or electromagnetic radiation by the analyte. This type of spectrometry is called absorbance spectrometry.

Principle involved in absorbance spectrometry and spectrometers

The majority of substances absorb ...

Introduction

Few decades back, A W Phillips proposed the notion of nominal income inflation against joblessness in the UK and established the stable and potential unfavorable association over the preceding decade . This scenario invented the Phillips curve. The findings of Phillips after twenty years, Thomas Sargent and Robert Lucas proposed the joblessness of the period 1970s and greater inflation concurrently against a Phillips curve background and criticized the unsuccessful econometric attitude on an extended scale. The Phillips curve showed positive behavior in the macroeconomic assessment. The sensitive econometric researches in the United States located a constant and managed association between joblessness and ...

Chapter 10:

Question1. As government expenditure increases, the income increases. This increase in income leads to a rise in consumption expenditure. A 1 unit rise in income leads to a rise in consumption by the marginal propensity to consume. As consumption expenditure increases, this induces further increase in output in the economy. So income increases. The increase in government expenditure creates a multiplier effect. This multiplier depends on the marginal propensity to consume (MPC). Higher the MPC higher is the multiplier effect.

The money market is at equilibrium when the demand for money equals the supply of money. The demand for money has ...

Abstract

The Nelson – Siegel – Svensson model is one of the preferred methods by which investors determine the value of bonds in the long run and thus make informed guesses as to the viability of each investment option. It is an accurate method of prediction when an investment portfolio needs to be set up. In this paper, by using the Nelson – Siegel – Svensson process, an attempt will be made to inform investors like to the best option for a fixed income portfolio. The paper would demonstrate how the process is to be used and applied to the data related to treasury bonds ...

Write your answers directly into the space provided.

Refer to the figure on page 4. First we look at the blue curve. - At the point labeled A on the blue curve, how many cars are being produced?

Answer: _100_________________________________

- At the point labeled A on the blue curve, how many computers are being produced?

Answer: __0_________________________________

- At the point labeled B on the blue curve, how many cars are being produced?

Answer: __50_________________________________

- At the point labeled B on the blue curve, how many computers are being produced?

Answer: __80_________________________________

- If the economy moves from point A to point B on the blue curve, how much is the reduction ...

Introduction

The main purpose of this report is to analyze that how learning curve is a function that measures how labor cost declines as units of production increases. Labor and production are two important concepts come under the ambit of economics and finance, and it’s usually associated with the productivity of the individuals as well as the firms. Learning Curve is a curve that associated with two different variables in particular in which an increment in a single variable would lead to decrease the power of the other one and vice versa. The utilization of Learning Curve has been receiving increasing and ...

DD Curve: DD Curve is the summarized relationship between Exchange Rate and Ouput Level which shows all the combinations of output and the exchange rate for which the output market is in short run equilibrium i.e (aggregate demand= aggregate output) E2 The above figure represents upward sloping DD Curve explaining the effect of movement in exchange rate on output level when both Domestic Price Levels(P) and Foreign Price Levels(P*) are fixed. The figure represents the effect of depreciation of domestic currency on domestic output levels and related aggregate demand. Thus, when domestic currency depreciates ...

Question 1:

(a) Suppose the income elasticity of demand for furniture is 3 and the income elasticity for doctors' services is 0.3. Compare the impact on furniture and doctors services of a recession that reduced consumer incomes by 10 per cent. (2 marks)

Change in income = 10% = 0.1

Income elasticity of demand = change in quantity demanded/ change in income

Therefore: change in quantity demanded = Income elasticity of demand × change in income

Impact of recession on furniture:

Change in quantity demanded = 3 × 0.1= 0.3 = 30%

A change of 10% in consumer income will result in a 30% change in quantity demanded of furniture.

Impact of ...

My research topic is imperfect competition in labor market. I started to search about the studies about the effects of a firm’s monopoly or monopsony power on wages and hiring. I evaluate my paper with the major features of U.S. labor legislation which is about the evolution of the labor union movement, the effects of wage discrimination on the efficiency of the labor market and the overall effects of unions on economic performance. Imperfect competition means perfectly competitive markets which maximize economic surplus and reduce economic surplus to varying degrees. This market type is very common. There are various ...

Question 1

Today, the market’s diversity provides numerous low calorie microwavable food options. In addition, increases in the income of individuals, people have the capacity to live easier lifestyles and this has led to increase in demand for certain products of preference.

The quantity demanded equation of the product is given by;

Qd = -5200 – 42P + 20Px + 5.2I + 0.2A + 2.5M

Therefore, the elasticity of P (partial differentiation)

δQdp = -42 Assuming all other independent variables are constant Hence elasticity of P = (δQdp). (δPQ ) = -42(P-5200-42P+5.2I+0.2A+2.5M) For the 3-pack unit = -42(5-5200-425+206+5.25500+0.210,000+2.5(5000)) Therefore = -42 (537810) = -212656 = -0.007906

Solving for Px

ΔQdp = 20(637810)=0.010579

Solving for I

QdI=5.2550037810=0.7564

Solving for A

QdI = 0.2(10,00037810) = 0.0528

Solving for M

...

[Your Full Name]

Problem 1 Opportunity Cost - Define the term “Opportunity Cost” Opportunity cost is the value of the foregone mutually exclusive alternatives. When choice are to be made between several mutually exclusive alternatives in terms of decision making, opportunity cost is the value of alternative that is forgone due to selection of some other alternatives. Generally, opportunity cost is the value of next best alternative that can be achieved with same input. For example: George had $2 in his pocket which is enough to buy either a cup of tea or a cup of coffee. Among ...

According to Shaun and Gottret (2004), the residual curve refers to the individual demand curve of a firm that is the part of the market demand which is not provided by other competing firms in the market. It can, therefore, be defined as the market demand function after it has been subtracted from the quantity supplied by other competing firms at each price. Suppose the market demand is D (p) and the supply provided by the other firms is S o (p), then there are several ways to calculate the demand for the firm. The first one is by expressing the relationship ...

Introduction

Opportunity cost can be defined as the cost related to any activity calculated in respect of the worth of the subsequent alternative given up. The opportunity cost, associated with the second top choice, is a sacrifice that a group or someone makes, who has selected one of the choices among many. Opportunity cost, a "cost" of the scarified goods or commodity after a choice is made. Opportunity cost in economics is an important concept, and has also been explained as "the fundamental relationship between choice and scarcity ". The idea of the opportunity cost in business plays a vital role in order ...

Interest rates are the monetary compensation or the cost of borrowing given to the lender(s) or supplier(s) of funds by the borrower(s) or demander(s) of funds or loans (CMU, 2010). The terms required returns and interest rates are similar in that the lender gets compensated for the funds they provide to the borrower. However, required returns are used when referring to equity instruments (investments) like common stock, and the interest rate is used when referring to debt instruments like bonds or bank loans. There are several factors that influence interest rates. They include inflation, risk ...

Law of Demand and supply

Introduction In economics, the law of demand and supply is one of the essential theories governing an economy. The theory of demand and supply determines price, accessibility, and the demand for a given service or product. Demand definition is the willingness of consumers to purchase a certain good or service in the market. The cost of the service or good reflects the consumer’s buying decision. The demand for an item is high when its price is lower than other supplementary goods. The curve of demand theory slopes downward due to the inverse relationship.

Alternatively, supply is the willingness of a ...

Objective 1:

i) Aggregate demand shows demand for real GDP by all the people in an economy, which they are willing and able to buy at different possible prices at a given point of time, holding other factors constant. The aggregate demand curve is downward sloping and shows an inverse relationship between price level and real GDP. Following is the explanation for downward sloping demand curve, which is very much different from income and substitution effects of demand of a single product:

1) Interest Rate Effects: When price levels increases in the economy, businesses and industries, have to borrow additional funds to ...

Chapter 7

Define recession and expansion. What are the beginning and ending points of a recession called? In postwar Canada, which have been longer on average, recessions or expansions? Recession: Recession is the phase in the economy during which the economic activity declines. During this period, production, employment, income and all other economic activities falls below the normal level. A country generally experience negative economic growth during recession. Expansion- After recession, the economy slowly starts to recover and the expansion happens. Expansion is the economic period during which the country’s GDP starts to increase because of increased productivity, employment, real ...

Group

Abstract Material selection is an important stage in engineering design. Engineers use various materials with different mechanical properties in building of structures. These mechanical properties include; tensile strength, yield strength, proof stress, Young's modulus, shears modulus of rigidity and ductility amongst others. Material selection increases the performance as well as durability of the engineering component. The expected life, cost, nature of loading and working environment are some of the factors that assist engineers to select materials for particular application. Therefore, engineers and designers must be able to determine the properties of these materials before they use them. Engineers ...

Hernstein & Murray’s The Bell Curve: Intelligence and Class Structure in American Life, offers a controversial statistical argument about social stratification and race being concretely linked to intelligence. However, the book more effectively investigates the consequences of American social stratification. The rich and educated members of society are increasingly isolating themselves in zip code enclaves instead of contributing to the American ideal of diversity. As a result, society has become increasingly divided by education, class and race. Overall, the book attempts to deconstruct complex socioeconomic issues of race, class and intelligence using statistical analysis. Intelligence is an important part of social ...

Demand refers to the quantity of a commodity a consumer is willing to purchase under different conditions. The demand for a commodity depends on a number of factors like the price of the commodity, income of the consumer, the price of substitute commodities, the price of complements, the preference for the good by the consumers, fashion trends, seasonality, and such others. Therefore, the demand function can be written as: QD = F(P, Y, PS, PC, T, O)

Where, QD: Quantity demanded

P: Price of the commodity PS: Price of the Substitute commodity PC: Price of the complementary commodity T: Consumers’ tastes and preferences ...

Introduction:

Marginal cost refers to the extra cost incurred by a firm due to an increase in output by one unit. The marginal cost curve, therefore, is a graphical representation used to show the increase in costs incurred by a firm with each successive increase of a unit of output. The marginal cost curve of a firm can take several shapes such as; a rounded check mark, a flat line or an upwardly sloped line (Baumol& Blinder, 2011).

The rounded check mark marginal cost curve:

Any firm that portrays an initial decline in marginal costs with an increase in output up to some point from which any increase in output results, in increasing marginal ...

QUESTIONS IN ECONOMICS

1.The AS curve does not describe the same kind of relationship between price and quantity as a microeconomic supply curve. Why? Because AS curve is derived from the macroeconomic equilibrium points of IS (Investment and Savings) and LM(Liquidity and Money Supply) curves. AS curve depends on the limits of the economy, if all the resources in the economy are used efficiently, then AS curve becomes parallel to the general price level dimension and perpendicular to the Real GDP axis. If all the resources are used, then it becomes parallel to the Real GDP axis. A supply curve ...

The learning curve is defined as the process of improving systems through adjustment and repetition of a certain task by an employee or an organization (Argote, 1999)i. This time needed based on three basic fundamentals: -the reduction in the time needed to complete a task through continuous implementation -the improvement rate declines as the volume of units goes up -the degree of progress can be anticipated over time The learning curve reflects a progress in the process as the production units double in size after a limited time span of implementation. The learning curve is applicable for any process ...

Question 1. Explain the two theories of aggregate supply. On what market imperfection does each theory rely? What do the theories have in common?

Answer:

Sticky-price theory: price for the goods on the market do not change immediately to different occasions that might influence this changes. The goods on the market can’t be out bought instantly. Some firms respond to this by reducing the number of products, instead of price reduction. They do that, because they want to evade profit loss. Imperfect information theory: this theory purpose is to model the relationship between changes in the money supply, ...

Aggregate supply refers to the total combined demand for individual goods and services in an economy at different price levels that prevail in the economy. AD

As shown in the diagram above, the aggregate demand curve is downward sloping.

Reasons for downward sloping of the aggregate demand curve There are three reasons that explain the downward sloping, and they include; Wealth effect The assumption is made that the government maintains the supply of money at a constant level, and this represents the level of wealth available in the economy. As the price level increases, the wealth in the economy as given by the supply of money declines due to a ...

1. Find the equation of the tangent to: a) u = x – 2x2 + 3 at x = 2 u1= 1 – 4x Gradient = 1 – 4(2) = - 7 The equation of a line is of the form y = mx + c , m is the gradient and c is the y intercept. When x = 2, y = 1 – 2(2 x2) + 3 y = 1 – 8 + 3 y = -4

Thus the equation of the tangent line will be given by,

Y = -7x + c substituting the point (2, -4) in the equation we have; -4 = -7 x 2 + c -4 + 14 = c 10 = c y = -7x + 10 ...

Introduction

Economic growth and policies are important for a nation like China which is considered the second most powerful nation in the world. When such an economy faces slow growth despite potential investments, there is a concern amongst its policy makers. This report discusses how China’s economists are planning to increase their economic growth as well as in depth analysis of economic concepts discussed in the newspaper article that has been chosen.

Article’s Summary

World’s second – largest economy, China faces an export slowdown and the reason for this situation is said to be Europe’s debt crisis. Considering the export slowdown, Chinese ...

Intermediate Economics

Chapter 13

Q1. Explain the two theories of aggregate supply. On what market imperfection does each theory rely? What do the theories have in common?

Answer: The two theories of aggregate supply are explained as follows.

Sticky price model: The model suggests that firms do not immediately change the prices in response to the change in market demand. The prices are also set by agreements between firms and customers. The market imperfection is that prices usually in goods market do not regulate with changes in demand. Sometimes even with the fall in demand, some firms reduce output rather than the prices. Imperfect information model: This model assumes that prices ...

Question 1

What are the three major categories of revenues for the federal government? The different kinds of taxes imposed by the federal government allow it to raise trillions of dollars in tax revenues (Tax Policy Center, 2013). The trillion in dollar revenues raised by the federal government come from three major sources; individual income taxes, payroll taxes and corporate income taxes. Major sources of revenue accounts for 46 percent from individual income taxes, 34 percent from payroll taxes and 11 percent corporate income taxes (National Priorities, 2013a).

The three categories of revenues for the federal government are as follows;

- Individual Taxes Individual taxes are the most prominent category of ...

Interest rate is a monetary tool used to control the amount of money in circulation in the economy. As a monetary tool, interest rates are adjusted by the central bank of a country to either increase the amount of money in circulation in the economy or reduce this amount (Lasher, 2010). When interest rates are raised, bonds and other commercial papers become attractive to invest in and so people buy these derivatives, reducing the amount of money in circulation in the economy. When they are reduced, commercial papers become less attractive and so people prefer to hold their money in liquid form ...

What is a quality-adjusted life year?

A quality-adjusted life year is a year of life that is free of any problems, symptoms or health related disabilities. It is a concept or a measure of determining the performance of medical treatments and interventions. For instance, calculations are made based on the cost per life gained by different treatment options. The quality-adjusted life year makes it possible to compare different programs directly. How can it be used to compare differences in health status between someone who is healthy and someone who is not? Can it be used to compare health outcomes of someone who is ill with someone who ...

Abstract

Innovation is not only about coming up with new inventions but it is also about how the product is marketed. Many a times an excellent product fails in the market due to poor innovative marketing strategy. Therefore, it is important to integrate the concept of innovation circle with marketing theories. Camera industry is a classic example of why some companies failed because of lack of a good innovative marketing plan while others succeeded. Kodak was one of the pioneers in the digital camera industry. In fact, it was one of the first who introduced digital camera in the marketplace. However, due ...

Oligopoly is a market structure in which only few firms are having control over market supply and since there are high barriers of entry and exit from the oligopoly market, the existing firms enjoy the monopoly kind position.( Parkin, 2011) Following are some of the salient features of Oligopoly Market: 1. Interdependence: Firms operating under oligopoly are interdependent in the decision making process. The reason for the same is that the number of firms operating and competing in the market are very few and any change in price or output level by one firm will have a direct influence ...

There are different factors in the market that are responsible for the different market shifts that happen in the market. These factors are responsible for the shifts in the position of the equilibrium price in the market. The demand of the product relies heavily on several issues that are present in the market. The availability of alternate items that are referred to as substitute items determine the slope the demand curve will take. The demand of a certain product will be heavily relying on the capacity of the market, as well. In order for a company to increase the demand of ...

Abstract

The aim of this experiment was to determine the titration curves exhibited by two amino acids (Glutamic acid and Alanine) and use them to determine their Pka values and their isolectric point. Results from the experiment reveal several interesting facts as will be seen throughout this paper. As ampoteric compounds, this paper seeks to investigate these base-acid properties found in amino acids. Therefore, this paper will have the following basic parts; introduction, procedure for titration, discussion of titration results with reference to the titration curves as well as a conclusion. The introduction part will give an in-depth look at the ...

Evidence showing that RBA is justified in considering an interest rate fall

At the beginning of the month of May, the Australian cash rate was said to be at 2.75%. This statistic was achieved shortly after the May’s bank rates were cut by the Reserve bank of Australia. This marked the lowest cut level achieved in the last 53 fiscal years in this country. The RBA’s board should consider cutting the cash rate because of the prevailing economic conditions in Australia today. The country’s financial markets are currently trading at a 14% chance of suffering a 25 basis points reduction; this sentiment was echoed by Credit Suisse while advocating for ...

Impact of Macroeconomic Variables on My Business

Abstract I examined in this report the impact that the changes on the different macroeconomic variables e.g., price level, interest rate, and exchange rate have on the economy. Also, an analysis of how fiscal and monetary policies of the Australian government are presented as these policies and variables influence the success or failure of my business, the CadsBerri. Then my analysis dwell on the net value model by Brandenburger and Nalebuff to show that rational strategy could help my business survive despite the uncertainties posed by the macroeconomic environment.

Introduction

My business is on manufacturing and exporting of good ...

Abstract.

The paper discusses the two widely known concepts of economic and how they are of importance to both the consumer and the producer. The various factors that cause them have also been analyzed in a detailed way as well as their effect in the market. Graphical representations have been incorporated in order to enhance clarity of the theoretical discussion.

Introduction.

In economics and particularly microeconomics these two terms are used extensively. Demand refers to the quantity demanded by consumers at one point in the market and they are able and willing to pay for them at a given market price, supply on ...

Introduction:

Coke has become so popular that the drink is replacing healthy beverages in people’s diets around the world. (1, 2) Phosphoric acid is one of the ingredients in the colas that should only be consumed in moderation. The food industry calls the acid used to lower the pH of a food or beverage an acidulant. (3) Phosphoric acid is a food additive under the category of acidulant. (4) It adds “a pleasant tartness to the beverage.” (5) The food industry uses phosphoric acid a lot, “It is added to foods as a preservative, acidifying agent, flavor enhancer, and clarifying agent.” (6) An ...

Introduction

The AS-AD framework is a very useful economy tool, which reduces the economy into a simple model of supply and demand. The aggregate demand curve (AD) is given by the summation of consumption (C), investments (I), government purchases (G) and net exports (X-M). On the other hand, the supply curve is a function of the expected price levels. This paper uses the AS-AD model to analyse the economy at various levels of employment, and the adjustments that accompany movement various policy actions. It begins with a depiction of an economy operating at less than full employment, showing that economies often tend towards the ...

Following the American Psychological Association’s Guidelines

Answers to the Questions 1.The city of Santa Utopia is plagued by ever increasing rent. Worrying that seniors may not be able to afford their rent payments, a city supervisor proposes imposing rent controls. Using supply and demand framework, diagram the effects of rent controls. Will the Santa Utopia rental market face excess demand or excess supply? In Utopia, the equilibrium price is at Pe and it has been very high for citizens. Therefore, a supervisor suggests applying rent control. If the city management applies that suggestion, the price level has to be kept under the equilibrium price. In ...

Abstract

This paper is on the topic of Government Expenditures and Revenues, Budget, National Debt. The first part of this paper will discuss the effect of government purchases on aggregate demand. The second section of this paper will discuss the shift in aggregate demand curve and change in GDP in comparison to aggregate demand curve, on the bases of factors like government purchases, GDP and the multiplier. The Final section of this paper will discuss the issue of crowding out and its implications on fiscal policy changes.

Government Expenditures and Revenues, Budget and National Debt

Yes, all government purchases have the same effect on the aggregate demand curve. ...

The interest rates for the central bank of Kenya have had different faces since 1991 with the rate changing as the economy of the country keeps on shifting from worst to best. At the moment, the exchange rates in Kenya stand at 8.5 percent as compared to that adopted by the Federal Reserve System (FED) of America which stands between 0 and 0.25 percent. From the year 1991 to 2014, the average exchange rate for Kenya is 14.62 percent. Kenya recorded a record of 84.67 percent in July 1993. At this time, the FED was enjoying the exchange rate of ...

The Transatlantic Trade and Investment Partnership

The Transatlantic trade and Investment partnership (TTIP) is a proposed agreement of free trade between the European Union and the United States of America. The aim of this agreement is to do away with the trade obstacles present in an extensive range of economic sectors (TELÒ, 2013). Removal of these barriers will make it easier to carry out trade between the European Union and the United States of America. Apart from cutting tariffs across all sectors, the United States of America and the European Union intend to deal with barriers such as the disparities in technical regulations, standards and procedures ...

The Keynesian economics school has invented the aggregate demand (AD) and aggregate supply (AS) model to explain the macroeconomic equilibrium in the economies. The model is based on two main macroeconomic variables those are the explanatory variables of AS and AD: 1) price level in the economy and 2) real output in the same economy. In this essay, I will explain what AS and AD includes, and how the economy works at the macroeconomic level.

Graph 1: AS and AD model in Graph

Aggregate supply (AS) includes the information of the total production level in an economy depending on the price level. In the short run, AS ...

- Construct a relative frequency histogram for the chest circumference data, using classes based on a single value. Looking at the table we first have to get the total frequency by summing the values in that specific column. The table is filled according to the following procedure. You can check out the excel file attached alongside that show numerical workings. Arrange the value in the order presented and then multiply each frequency and chest size per row to get the product of frequency and chess size. When you add the entire column of the results and divide by the ...

[INSERT TITLE HERE]

This paper was prepared for [INSERT COURSE NAME], [INSERT COURSE ASSIGNMENT] taught by [INSERT INSTRUCTOR’S NAME]. Part A Winter starts and the weather turns sharply colder. The demand for the hot chocolate will increase while the supply at first remains the same. An increase in the price of hot chocolate shall arises from scarcity of hot chocolate that in turn arises from increase in price. An increase in the price leads to an increase in the supply. Graphically increase in the prices of hot chocolate only leads to changes along the ...

- Introduction The Midwest has for many years been known for its lucrative agriculture. Large scale production of agricultural products such as corn and soya beans characterizes a large proportion of lands in the Midwest. Considering that agriculture is a main source of income for many Midwesterners, the US department of Agriculture(USDA) has over the years conducted studies to determine the profitability of agriculture and the patterns that characterize the agricultural market in the Midwest today. In a published article in the Economist entitled Fields of Gold, it is evident that the Midwest has in the recent past become a victim ...

Question One

Variable costs are the costs that are directly proportional to the level of output. These costs are low in case of low output and increase with the increase in the quantity of commodity produced (Mankiw G. 2011). For this fishing business, the variable cost elements include the labor costs, the cost of fuel as well as bait, ice and equipment costs. This is because at low output these costs are low and increase gradually with the increase in the quantity produced.

Question Two

The labor cost per unit curve drops until a minimum of $0.17 with 5000 units produced after which the ...

The equilibrium price is determined by forces of demand and supply of a commodity. At the equilibrium point the quantity of coffee supplied in the market is equal to quantity demanded. This means that suppliers will sell all the quantity they supply and customers will be able to get the quantity they need from the market. The equilibrium price will therefore be shown by the intersection of supply and demand curve.

However, when I go to purchase a tin of 500 grams of coffee I do not always pay the same price. This means that the equilibrium price keeps on changing ...

Introduction

Alberta, a major and famous western province of Canada, has enjoyed a healthy economy resulting from crude oil exports. The region serves as the largest producer of synthetic crude, crude oil and natural gasses in Canada. Alberta arguably ranks in the second position in the leading natural gas exporters. The city has therefore offered many employment chances not only to the locals but also to people from other nations. However; the sudden collapse in the prices of crude oil has served to drive up unemployment rates in one of the most oil-sensitive regions in Canada (The Globe & Mail, 2015). The level ...

Abstract

The paper dwells on general equilibrium theory by putting into perspective various critical issues. The origin of the concept of general equilibrium theory is illuminated dating back to neoclassical period. Moreover, various models such as Walras model of pricing and modern equilibrium model is also put into consideration. Finally, the importance and application of general equilibrium has also been discussed at length. General equilibrium theory refers to a concept modeled around theoretical economics. The modern general equilibrium takes into consideration three important interpretations which should be taken into consideration. The idea of general equilibrium theory cannot be complete when there ...

U.S. Fiscal and Monetary Policy

Fiscal policy

Fiscal policy denotes the use of government spending and taxation in order to steer the economy to the desired direction at a point in time. There are two types of fiscal policies, and they include the contractionary and the expansionary fiscal policies. In contractionary fiscal policies, the government enacts policies aimed at reducing the production in the economy. These could entail an increase in tax and lowering the government expenditure in the economy. On the other hand, the expansionary fiscal policies entail the policies adopted by the government with a view of increasing the overall output ...

Introduction

Concentration refers to the quantity of a given solute or analyte that is present in a given quantity of solution. Measuring the quantity of a solute in a solution requires the use of different techniques. One of these methods employs use of a standard whose concentration is known and an instrument to detect the solute. Standards refer to set of mixtures whose solute and solvent have been accurately weighed or measured to give the correct concentration. The absorbance of the standards can then be measured using a spectrophotometer. A graph indicating the relationship existing between the solute concentration of the standards and their absorbance can ...

IS-LM model also known as the Investment Saving-Liquidity Preference Money supply model is a macroeconomic tool that shows the interrelationship between interest rates and the actual output, in the money market as well as the goods and services market. The point at which the IS and LM curves intersect is known as the general equilibrium. This is an extremely fundamental tool and has been used by different economists in a bid to explain the various macroeconomic concepts that define how activities flow in the goods and services market and monetary market. As a critical tool among monetarists and Keynesians the IS-LM model ...

Instituion

According to the findings from the activity given in class, figure 1 shows a curve representing the relationship between price and demand of goods/services. Onces the slider is moved towards the upper side, the price of the the goods/services tend to raise, while the values of the demand tend to go down. On the other hand, once the slider is moved towards the lower ,end, the price of the good/servuces tend to go down, while the values of the demand tends to go upwards. In the world of economics, this is referred to as the demand curve. It depicts ...

The equilibrium price is determined by forces both demand and supply of a product. At the equilibrium point the quantity of tea supplied in the market is equal to quantity demanded. This means that customers will be able to get the quantity they need from the market while suppliers will sell all the quantity they supply in the market. The equilibrium price will therefore be shown by the intersection of supply and demand curve. At the equilibrium point the market clears ensuring satisfaction of customers and suppliers.

However, price of a packet of 500 grams of tea keeps on changing making ...

1. G20 summit to test EU debt deal 2. As Greece faces default, where is Europe's firewall?

Summary: key points in the article

The G20 countries are to meet in France to make major decisions for the global economy. Europe is in crisis both from huge debts and the banking sector is also in trouble. In particular, Greece is the country with the largest debt crisis. Efforts in the meeting will be to strengthen the bank balance sheets by reducing the budget deficits to prevent the weakening of the Euro. The source for this cash bailout is expected to be borrowed from emerging powers ...