Posts by Econ

Total # Posts: 18

econ
constant

tina
(100 – 2Px + 1Py) (Px -20) Now, take the derivative of the above with respect to Px to get the following first order condition : 100- 4 Px + Py +40 = 0 When i try to multiply and then take the derivative of the top part out I keep getting : -1860-4Px-19Py What am I doing ...

tina
40-2q+.03q^2=40-q-.01q^2 .04q=1 q=25 this is what i keep getting but I am suppose to be getting 50 what am I doing wrong?

econ (economyst)
The real exchange rate between Canada and U.S. must be unity if LOOP is found held for all the common goods that are consumed in both countries. True or False? Economyst, last time you said it is false, but if LOOP holds for each good in the basket, it will also hold for the ...

econ
I asked this question couple days before. Exporters suffer when their home currency depreciates and prosper when it appreciates. True or false? and why? Can I explain it this way, it is false because, let say the exchange rate is 1 \$/euro, and then dollars depreciated to 1.57...

econ-exchange rate
E=exchange rate, H=Home, F=foreign Usually exchange rate are expressed in units of home currency per units of foreign currency. (E H/F) But why for the real exchange rate, it is q F/H ? This is really confusing.

This is the covergence to absolute PPP part from my text: The evidence suggests that PPP works better in the long run but not in the short run. In reality, research shows that price differences, the deviations from PPP, can be large and persistent in the short run. Estimates ...

I got this long question i am not sure how to do. The current dollar-pound exchange rate is \$2 per pound. A U.S. basket that costs \$100 would cost \$120 in the United Kingdom. For the next year, the Fed is predicted to keep U.S. inflation at 2% and the bank of England is ...

econ
The real exchange rate between Canada and U.S. must be unity if LOOP is found held for all the common goods that are consumed in both countries. True or false?

econ
but did ms. sue imply that the answer is true?

econ

econ
Exporters suffer when their home currency depreciates and prosper when it appreciates. True or false? and why?

econ
so the arbitrage condition should be E pounds/euros=3/4. ( i got this by multiplying 1/2 and 3/2 ) Is this correct?

econ
True of False? E=exchange rate Suppose E \$/euros = 3/2 and E \$/pounds = 2, and there is no trade friction, the no arbitrage condition implies that E pounds/euros = 2

Econ MC
Dick owns a dog whose barking annoys Dick's neighbor Jane. Dick receives personal benefit from owning the dog, and Jane bears a cost of Dick's ownership of the dog. Assuming Dick has the legal right to keep the dog, which of the following choices are true? a. A private...

Econ MC
Internalizing a positive externality through a government subsidy will cause the industry's supply curve to a. remain unchanged. b. shift down by an amount less than the subsidy. c. shift down by anamount equal to the subsidy. d. shift down by an amount greater than the ...

Econ MC
I am having trouble solving this MC. Marylyn and Rebecca sell lemonade on the corner. Each glass costs them \$0.05 to make. At the end of the day, they have sold 50 glasses and received a total producer surplus of \$12.50. That would mean that Marylyn and Rebecca sold each glass...

Econ MC
Dick owns a dog whose barking annoys Dick's neighbor Jane. Suppose that the benefit of owning the dog is worth \$700 to Dick and that Jane bears a cost of \$500 from the barking. Assuming Dick has the legal right to keep the dog, a possible private solution to this problem ...