Consider the Output Demand Curve P = 100 – Q and the Output Supply Curve P = Q.
- Which equation represents the behavior of the household?
- Which equation represents the behavior of the firm?
- How do we measure the gains from exchange to the household?
- How do we measure the gains from exchange to the firm?
- What is the equilibrium quantity demanded of output?
- What is the equilibrium quantity supplied of output?
- What is the equilibrium price of a unit of output?
- What is the total value the household places on the equilibrium amount of
output? - What is the amount of the household’s total expenditures on the equilibrium
amount of output? - What is the firm’s total revenue from the sale of the equilibrium amount of
output? - What is the firm’s total cost of production for the equilibrium amount of output?
- What is the household’s consumer surplus?
- What is the firm’s profit?
- What does the household gain from the exchange?
- What does the firm gain from the exchange?
- Will an excise tax on this product increase or decrease the household’s consumer
surplus? - Will an excise tax on this product increase or decrease the firm’s profits?
- Will in an excise tax on this product harm the households or the firms or both?
- Will imports of this product increase or decrease the domestic household’s
consumer surplus? - Will imports of this product increase or decrease the domestic firm’s profits?
- Will imports of this product harm the domestic households or the domestic firms
or both? - Will an excise tax (tariff) on imports of this product increase or decrease the
domestic household’s consumer surplus? - Will an excise tax (tariff) on imports of this product increase or decrease the
domestic firm’s profits? - Will an excise tax (tariff) on imports of this product harm the domestic
households or the domestic firms or both? - What action has the FED taken to decrease the inflation rate?
- Will this action increase or decrease domestic interest rates?
- Will this action increase or decrease domestic investment?
- Will this action increase or decrease GDP?
- Will this action increase or decrease the CPI?
- Will this action increase or decrease capital inflows?
- Will this action increase or decrease the foreign exchange rate?
