Consider the market for wholesale market for milk in Tasmania in 2019 with a perfect elastic supply curve and downward sloping demand curve. The current equilibrium price of milk is $0.55 is per litre and 950 million litres of milk is bought and sold.

Suppose that in 2020 due to lower feed costs for dairy cows, the price drops to $0.45 per liter. Illustrate the change in equilibrium price and quantity and any changes in the demand or supply of wholesale milk in Tasmania.

Suppose the government reduces taxes by $20 billion and that the MPC is .75

What is the total effect of the tax cut on aggregate demand?

How does the total effect of this $20 billion tax cut compare to the total effect of a $20 billion increase in government purchases? Why?

Where must the government believe the economy is presently? Draw and label a graph illustrating both where they think we are presently and the changes which will occur with the change in net taxes.

A Carnot heat engine within a piston cylinder has 10 kg of air as the working fluid and operates between 1000 K and 350 K. During the heat addition process the pressure changes by a factor of 2.5. The volume at the end of the isentropic compression process is 5m^3. Determine the pressure at each state in kPa and the net heat of the cue in KJ assuming Constant Heats at 300 K. Draw a P-v and T-s diagram

The polarization of a helium-neon laser can change with time. The light from a 1.5 mW laser is initially horizontally polarized; as the laser warms up, the light changes to be vertically polarized. Suppose the laser beam passes through a polarizer whose axis is 33 ∘ from horizontal.

By what percent does the light intensity transmitted through the polarizer decrease as the laser warms up?

Express your answer using two significant figures.

1. A company must pay a liability of $1,000 in 2 years. Zero coupon bonds with term of 1 year and 4 years are available for investment. The effective rate of interest is 7.5%.

   1. (a) How much of each bond should the company buy in order to achieve full immunization?

   2. (b) Show empirically that immunization has been achieved even for large changes in the interest rate. Take as an example a decrease in the interest rate to 0% and an increase to 100%.

Lulu hyper market reduces the price of oranges from OMR 5 per kg to OMR 3. Hence, the weekly sales increase from 8,000 to 10,000 units.

Answer the questions:

Q1. Calculate the price elasticity of demand with clear steps of working.   

Q2. The observed value belongs to which type of price elasticity of demand.

Q3. Describe in your own idea the demand situation and the shape of its curve in relation to the market changes.   

Visit the Board of Governors of the Federal Reserve website and read the latest Federal Open Market Committee (FOMC) statement which discusses the current type of monetary policy which the Federal Reserve is implementing:

http://www.federalreserve.gov/monetarypolicy/default.htm

1. Is the Federal Reserve implementing expansionary or contractionary monetary policy? Why?

2. How do you think that the Federal Reserve's changes to monetary policy will impact the condition of the U.S. economy? Why?

1. Describe the effects of each of the following events on the US economy (i.e. What may happen to the price? To the real output?). Explain briefly what cause these effects (i.e. What happens to determinants of AD or AS or both? Why? ).Illustrate your answers in given AD-AS diagrams. Label your diagrams and changes carefully.

1. Consumers are confident about the future employment prospect.

            P                                     AS                                                   

                                                AD

                                                                        Y        

1. Firms are very pessimistic about the economic outlook.

            P                                     AS   

At the beginning of the current year, Snell Co. total assets were $282,000 and its total liabilities were $191,200. During the year, the company reported total revenues of $127,000, total expenses of $93,000 and dividends of $22,000. There were no other changes in equity during the year and total assets at the end of the year were $294,000. The company's debt ratio at the end of the current year is:

A: 35.0%.

B: 65.0%.

C: 67.8%

D: 147.00%

E: 53.8%