You are watching: Unanticipated inflation benefits debtors at the expense of creditors.
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"Between 2000 and 2008, the price the oil boosted from $30 per barrel to $140 per barrel, and also the price of gasoline in the Unit
C) There was no price regulate on gasoline at the time.
During the 1970s the us government developed a price ceiling on gasoline, however as all price ceilings collection below the equilibrium price, it outcomes in both a deadweight loss and a it is provided shortage.
Since the price is "too cheap", climate the amount demanded will certainly be more than the quantity supplied. Rising costs in gasoline production made things worst, due to the fact that suppliers were constantly reducing your supply the gasoline, while consumer demand to be constantly increasing.
8 months ago
What is a corporation?
a company or group of civilization authorized come act as a solitary entity (legally a person) and also recognized thus in law.
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1 year ago
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What is a budget constraint?
D. It is the restricted amount that income accessible to consumers to spend on goods and also services.
A budget plan constraint happens as soon as a customer is restricted in the goods and services they consume by a certain income.
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10 month ago
Related come the business economics in practice on page 77: If a hurricane results in the supply of hotel rooms decreasing and also the need
Increases; Ambiguous effect on equilibrium quantity
This case states the the supply of hotel rooms decreases and the demand for hotel rooms increases because of the hurricane, for this reason this adjust will change both the it is provided curve and also the demand curve in the hotel rooms market.
This will transition the it is provided curve leftwards and also demand curve rightwards, therefore as a result, there is rise in the equilibrium prices and also the result of this change on the equilibrium quantity is ambiguous since that will certainly be dependent top top the magnitude of the shifts of demand and also supply curve.
5 months ago
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