Assume a demand equation:

Upper Q Subscript d Baseline equals 9 minus 0.1 p minus p Subscript c Baseline plus 0.01 p Subscript s Baseline plus 0.0001 Upper YQd = 9 − 0.1p − pc + 0.01ps + 0.0001Y

and a supply equation:

Upper Q Subscript s Baseline equals 0.1 p minus 0.02 p Subscript i Baseline plus 0.01 Upper N plus 0.01 Upper T minus 0.1 wQs = 0.1p − 0.02pi + 0.01N + 0.01T − 0.1w

where

p = price of the good

Q = quantity in thousands of units

p Subscript c Baseline equalspc=price

of a complement = $3
p Subscript i Baseline equalspi=

price of an input = $450
p Subscript sps=

price of a substitute = $200
N = number of firms = 700

Y = consumer income =
$20 comma 00020,000

T = index of technology = 300

w = wage rate =
$1010

If the price is

$4545,

there will be an

excess demand

excess demand

excess supply

of

nothing

thousand units.

Which of the following actions is most likely to result in a decrease in the money supply? a. the required reserve ratio for banks is decreased. b. the discount rate on overnight loans is lowered. c. the federal reserve bank buys treasury bonds. d. the government sells a new batch of treasury bonds. 2b2t

Suppose an economist believes that the price level in the economy is directly related to the money supply, or the amount of money circulating in the economy. the economist proposes the following relationship: p=a x m - p=price level - m=money supply - a=a composite of other factors, including real gdp, that change very slowly over time. how might an economist gather empirical data to test the proposed relationship between money and the price level? an economist would persuade the federal reserve to change the money supply to various levels, and observe the resulting changes in the price level. unlike researchers in the hard sciences, economists cannot study complex relationships using data. economists do not usually develop theoretical models of the economy but only analyze summary statistics about the current state of the economy. an economist would look for data on past changes in the money supply, and note the resulting changes in the price level

Individual consumers belong to which step of choosing a target market? possible customers competition demographics communication