Correct answers 50 3 3 pts question 17 the new profit

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Correct Answers 50
3 / 3 pts Question 17 The new profit maximizing quantity (in cups) of lemonade is _____.
3 / 3 pts Question 18 The new corresponding maximum profit is $______
3 / 3 pts Question 19 Imagine that you kept the “sticky” lemonade price even though demand has changed (use the price you found in #12). What is the quantity sold now? ________
3 / 3 pts Question 20 NOTE: There is no graphing component to be collected for this homework. However, you should be comfortable creating two separate graphs from the above questions in part 2. You should be able to: 1. Draw a demand curve graph showing both the original and new demand curves. Label equilibrium price and quantity in in both cases. 2. Draw the total revenue curves for both cases in a graph directly below the demand curve graph (remember the horizontal axes for the demand curve graph and the total revenue graph are the same). Again imagine that you kept the “sticky” lemonade price even though demand has changed (use the price you found in #12). What is the profit now? $______
The table below shows solutions for all of part 2. Part 3: True/False Questions (40 questions at 1 point each for a total of 40 points) 1 / 1 pts Question 21 Consumption is positively related to stock market wealth but negatively related to taxes and tax rates.
1 / 1 pts Question 22 If aggregate expenditures rise unexpectedly, then inventories will also rise unexpectedly.
1 / 1 pts Question 23 Services are the most interest rate sensitive component of consumption.
1 / 1 pts Question 24 Investment is the most cyclical component of aggregate expenditures. True Correct! False
1 / 1 pts Question 25 The 'job-loss' recovery occurred following the 2001 recession.
1 / 1 pts Question 26 Negative real interest rates imply that if you save today, you can purchase a smaller basket of goods and services in the future, relative to the basket you could have consumed today.
1 / 1 pts Question 27 The higher the marginal propensity to consume the more powerful tax policy is to influencing consumption.
1 / 1 pts Question 28 According to the results of the estimated consumption function, consumption is more sensitive to changes in stock market wealth relative to changes in real estate wealth. True False Correct!
1 / 1 pts Question 29 The sensitivity parameter in the consumption function that measures how sensitive consumption is to changes in consumer confidence is referred to as the marginal propensity to consume.
1 / 1 pts Question 30 In a consumption function with income (Y) on the horizontal axis and consumption (C) on the vertical axis, a fall in the real rate of interest (all else constant) will cause a shift upward of the consumption function.

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