26 Oct Consider the following demand and supply curves: QD = 40 15P QS = 6 + 2P 1. Use these two equations to solve for the market clearing price and quantity. 2. Draw the diagram. 3. In the dia
I. Consider the following demand and supply curves:
QD = 40 – 15P
QS = 6 + 2P
1. Use these two equations to solve for the market clearing price and quantity.
2. Draw the diagram.
3. In the diagram, indicate Consumer Surplus.
4. In the diagram, indicate Producer Surplus.
II. An entrepreneur has the opportunity to start a firm. The entrepreneur’s current income is $300,000. Should the entrepreneur start the firm? Use the following data to compute the profit from the start up. Suppose that the entrepreneur knows that:
Firm revenue: $6,000,000
Wage Costs: $4,500,000
Capital Costs (machines, buildings, etc.): $1,000,000
- Should the entrepreneur start the firm? Hint: Compute profit.
- Suppose that capital costs rise to $5,000,000 all else the same. Should the entrepreneur start the business? Explain.
III. Please use FRED: http://research.stlouisfed.org/fred2/ (Links to an external site.)
A. Plot GDP for the U.S.
- Real Gross Domestic Product from 1947 to present (Billions of Chained 2012 Dollars, Seasonally Adjusted)
- Gross Domestic Product from 1947 to present (Billions, seasonally adjusted)
- Define each series and explain the difference between real and nominal GDP.
- Explain what the 2012 index means.
B. Plot inflation for the U.S.
- Consumer Price Index: All Items for the U.S. City Average from 1947 to present (annual, seasonally adjusted), CPIAUCSL.
- Personal Consumption Expenditures Excluding Food and Energy (Chain type Price Index): All Items for the U.S. from 1959 to present (Index 2012, seasonally adjusted, monthly), PCE.
- Producer Price Index, all commodities, PPIACO.
C. Plot unemployment for:
- Civilian unemployment rate from 1948 to present (percent, seasonally adjusted, monthly).
- Unemployment Rate in Iowa from 1976 to present (seasonally adjusted, monthly). Add this series (IAUR) to national series.
- Labor Force Participation Rate (CIVPART) and age groups (16-19 yrs, 20-24 years, 25-54 years, 55 years and over) and by gender.
- Briefly explain the graphs.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Wridemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.