You run a school in Florida. Fixed monthly cost is $5,835.00 for rent and utilities, $5,906.00 is spent in salaries and $1,061.00 in insurance. Also every student adds up to $100.00 per month in stationary, food etc. You charge $678.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $11,538.00, salaries to $6,613.00 and insurance to $2,290.00 per month. Variable cost per student will increase up to $192.00 per month. However you can charge $1,099.00 per student. You want to determine in percent the new charge compared to the previous charge. To calculate this, divide the new change per student by the previous charge per student, keep in a decimal form and round to 3 decimal points.

6. why the aggregate supply curve slopes upward in the short run in the short run, the quantity of output that firms supply can deviate from the natural level of output if the actual price level in the economy deviates from the expected price level. several theories explain how this might happen. for example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. consider a soybean farmer who expects a price level of 100 in the coming year. if the actual price level turns out to be 90, soybean prices will , and if the farmer mistakenly assumes that the price of soybeans declined relative to other prices of goods and services, she will respond by the quantity of soybeans supplied. if other producers in this economy mistake changes in the price level for changes in their relative prices, the unexpected decrease in the price level causes the quantity of output supplied to the natural level of output in the short run.