Assume in a private closed economy that the equilibrium level of income is $380 and the MPS is 0. Now suppose government collects taxes of $50 and…
September 3, 2020
The market demand function is QS = 18 – 2P The market supply function is QD= 5P – 1.5 both measured in billions of bushels per year. The initial…
September 3, 2020

Suppose that the market for autoworkers is initially in equilibrium, but then the automakers purchase capital goods that are a substitute for workers. What happens to the market for autoworkers? Explain. Now, suppose that the automakers improve working conditions at the plants. What are the effects? Explain.

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