Question 1: Why is it important for managers to understand both short run and long run supply and demand? Please provide one hypothetical or real life example that illustrates your response. Question 2: Under what circumstances would it be appropriate to resort to plant or company closings or layoffs? What is a good guide
Future Market Conditions describe future market conditions that your selected company/industry will face. Explain your conclusions. Address the following topics in your paper (you need to address all items from a to e plus at least one from f to i): a. Market structure b. Impact of new companies entering the market c. Curr
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There is a major technological advance in the process for producing bicycles. a. What happens to bicycle supply? b. What happens to bicycle demand? Peanut butter and jelly are complements in consumption. The price of peanut butter rises. a. What happens to the demand for jelly? b. What happens to the demand for pean
The demand for new homes in the United States is often described as highly cyclical and very sensitive to housing prices and interest rates. Given these characteristics, describe the effect of each of the following on the quantity demanded or the demand for new homes. Indicate whether the effect of each of the following is an
_______ Suppose that the Fed pursues a policy of adjusting reserves to keep the interest rate fixed no matter what shocks hit the economy. With the help of IS-LM diagrams, explain how the Fed would react: a. If foreigners buy fewer goods and services from the United States because of recessions in their countries. b.
What is the definition of price elasticity of demand? Explain the relationship between price elasticity and total revenue? How does price elasticity of demand affect a firm's pricing decisions? How does the availability of substitutes affect price elasticity of demand? Provide examples using both graphs and numeric examples. Jus
The milk industry has a number of interesting aspects. Provide economic explanations for the following: a. Fluid milk is 87% water. It can be dried and reconstituted so that it is almost indistinguishable from fresh milk. What is a likely reason that such reconstituted milk is not produced? b. The US has regional milk
I need help with the following problem: Please read the Stoval Home Products case at http://www.businesscommunication.org/publications/bcq/cases/Stovall.pdf Apply as many concepts as possible from the readings. After you've written the letter, describe how you used the ideas from the readings. The paper should be betwee
A bumper crop of farm products causes: a) only a slight decline in the price of farm products because the demand for farm products is income inelastic. b) a large decline in the price of farm products because the demand for farm products is price inelastic. c) only a slight decline in the price of farm products becaus
Mr. Jones has decided to deposit $5,000 that he hid in a shoebox into his bank. What is the impact of his deposit to the money supply? (Assume the required reserve ratio is 5% and use simple money multiplier) From this example, can you elaborate the impact of your deposits into the banks?
Office building maintenance plans call for the stripping, waxing, and buffing of ceramic floor tiles. This work is often contracted out to office maintenance firms, and both technology and labor requirements are very basic. Supply and demand conditions in this perfectly competitive service market in New York are: QS = 2P -
1. As the price of a resource (e.g., labor) decreases, a) demand for that resource increases b) the quantity demanded of that resource decreases c) the supply of that resource increases d) producers are more willing and able to hire that resource 2. One determinant of the derived demand for a re
1. Suppose the government wishes to spur the production of peanuts for their potential usage in making biodiesel in order to reduce our dependence on foreign oil. Further suppose that the market demand and supply for soybean oil are given by QD = 100 - P and QS = 50 + .3P, where Q = barrels of peanut oil, and P = price per
The monthly wholesale demand for beef in the Honolulu market are shown below. Quantity of Fresh Beef Price of Fresh Beef in Sold in 1000 lbs Dols. per Pound 10 10 10 9 10
Air California is a regional airline providing service between Los Angeles, California and Las Vegas Nevada. An analysis of the monthly demand for service has revealed the following demand relation: Q = 45,000 - 250P - 300PC + 250BAI + 10,000S Where Q is quantity measured by the number of passengers per month, P is the pr
Rising jet fuel prices rently led most major US airlines to raise fares by approximately 15 %. Explain how this substantial increase in airfares would : a) affect the demand for air travel b) the demand for hotels c)the demand for rental cars d) the supply of overnight mail
You are a manager at the Chevrolet division of General Motors. If your marketing department estimates that the semiannual demand for the Chevy Tahoe is Q = 100,000 - 1.25P, what price should you charge in order to maximize revenues from sales of the Tahoe? Please explain!
The following is a demand schedule for shoes: Price: $100 $80 $60 $40 $20 Quantity: 10 14 18 22 26 a. Illustrate the demand curve. b. How much will consumers spend on shoes at a price of $80? c. As price drops from $100 to $80, is the demand elastic or inelastic? Sho
1. The following relations describe monthly demand and supply relations for dry cleaning services in the metropolitan area: QD = 500,000 - 50,000P (Demand) QS = -100,000 + 100,000P (Supply) where Q is quantity measured by the number of items dry cleaned per month and P is average price in dollars. A. At what averag
Please draw these four graphs carefully as you would for a workplace memo. There are no equations or numbers in this exercise. 1.Demand increases; Supply increases. [Both curves move in the same direction.] a.Demand increases more than Supply increases. (i.e. the D curve shifts more to the right than the Supply curve shi
Wheat prices soared to a record on futures markets Thursday, propelled by tight world supplies and strong demand. Relief could be awhile in coming. Wheat for December delivery closed at $9.33 a bushel in Chicago, more then double the price from a year ago. Drought in Australia and poor crops in other nations helped drive US and
1. Price discrimination is _____. illegal in most economically developed nations very rare in a market economy common, and evidence of monopoly all of the above 2. Market power is the ability _____. to set prices and quantities sold of capitalists to exploit the w
The demand for personal computers can be characterized by the following point elasticity = -5, cross-price elasticity with software = -4, and income elasticity = 2.5. Indicate whether each of the following statements is true or false, and explain your answer. A. A price reduction for personal computers will increase both the
How does self-interest help achieve society's economic goals? Why is there such a wide variety of desired goods and services in a market? In what ways are entrepreneurs and businesses at the helm of the economy but commanded by consumers?
1. What is the law of diminishing marginal productivity? How does it differ from average productivity? 2. What is derived demand? What is the relationship between the productivity of an employee and his or her wages?
Quantity Marginal Cost Marginal Benefit 0 1 2 10 2 3 9 3 4 8 4 5 7 5 6 6 6
Sports Company makes 2 products, footballs and baseballs. Additional information follows: Footballs Baseballs Units 4,000 2,500 Sales $60,000 $25,000 Variable costs 36,000 7,000 Fixed costs 9,000 9,000 Net income $15,000 $9,000 Profit per unit $3.75 $3.60 If Sports has unlimited demand for both pr
Dear OTA, I have another difficult task, I need help with the following and correct formatting for this project to incorporate into a final paper, I hope you can help! Please advise, Thank you! OTA, I found the information in the library for 1 credit. This question has been ask before however, if you think it not what is in the
In the imperfect competitive market of jeans, Lean Jeans, Inc., recently offered rebates of $1 off the regular $50 price. Quantity sold jumped 4 more jeans from the previous 100 figure the previous month. A. Calculate the arc price elasticity of demand for Lean Jeans. Based on the previous question and using markup pricin