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1. Define terms: An inelastic good is product for which demand does not reduce significantly as a result of an increase in price. This generally means that price increase have little impact on how much...

A government can manipulate floating rate by controlling the interest rate. To increase the exchange rate, ie the value of the currency, the government can increase its interest rate, which attracts forei...

A negative externality of consumption is when the consumption of a good or service results in negative effects to the third party. An example of this is smoking cigarettes. The consumption of a cigarette ...

At P_Qe supply equals demand so we set equations equal to each other and solve as symoltaneous equations: 50+45Q=100-5Q

then 50Q=50

so Q_e=1.

By ...