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
Suppose that the current market price of VCRs is $300, that the average consumer disposable income is $60,000, and that the price of DVDs (a substitute for VCRs) is $500. Under these conditions annual U.S. demand for VCRs is 10 million per year. Statistical studies have shown that for VCRs the own-price elasticity of demand is -
There are four factors that influence the price elasticity of demand: availability of substitutes, the specific nature of the good, the part of income spent on the good, and the time you have to buy the good. Pick a good you have purchased in the past week at a grocery or convenience store. Describe how each of the factors contr
Markets may be local, national, or global. The extent and size of the market is, in part, determined by how easy it is for suppliers to offer their product to buyers and how easy it is for buyers to find suppliers. How has the Internet expanded the extent and size of markets for goods and services? What specific examples can you
Quantity supply (domestic) Price Quantity demand (domestic) 12 $5 2 10 4 4 7 3 7 4 2
Rising jet fuel prices recently led most major US airlines to raise fares by approximately 15%. Explain how this substantial increase in airfares would affect the following: 1) The demand for air travel 2) The demand for hotels 3) The demand for rental cars 4) The supply of overnight mail
Suppose the ratio of deposits that banks hold in the form of reserves is 7 percent. Suppose further that people want to hold 8 percent of their deposits in the form of cash. Then, if the fed wants the money supply to be $6,228 billion, what is the necessary level of high powered money? Assume an economy in which the reserve
The demand for a product can change due to many factors. Distinguish between a change in demand and a change in quantity demanded. What are the determinants of demand? What are the determinants of supply? Explain each and give at least one example for each of these factors. Use your experiences, the text, the South University On
In economics, the demand for a product is considered downward sloping. This implies that demand increases when price decreases. Is this always true? Name some products for which the demand remains unchanged regardless of the price. Also, mention some products for which demand increases when the prices increase. Give appropriate
#1 Perform an economic cost/benefit analysis on one of the following issues. You must have both 2-3 costs and benefits and conclude whether a net benefit or cost exists. -Move to government provided national health care system -Increase tax rates on the rich (back to pre-2001 levels) -Close borders and implement an im
The following table shows the quantities of corn supplied and demanded at different prices. Price per Ton Quantity Supplied Quantity Demanded $80 600 1,200 $90 800 1,100 $100 1,000
True or false and explain: The Aggregate Demand for goods and services in an economy must at every moment equal the value of Real Gross Domestic Product because both are defined to be the sum of (C+I+G+X-IM).
What is significant about the connection between the demand for goods and market failures? What happens to the demand for goods when a market fails, and how does the government regulate market failures?
1. Country A is a country that produces a variety of goods and services. Considering the policies/events listed below, how might country's A production possibilities frontier change (ie shift out or in)? a. The government deregulates industries. b. The government increases military spending. c. The government increases tax
I need help with the following assignment. Please see the link for the article. Prepare a 600-word paper in which you: a. Define economics b. Define microeconomics c. Define the Law of supply d. Define the Law of demand e. Identify the factors that lead to a change in supply and a change in demand Analyze th
Graphically, competitive market supply is measured by the vertical difference of competitor demand curves. vertical sum of competitor demand curves. horizontal difference of competitor MC curves horizontal sum of competitor MC curves.
The recent recession has hurt several industries due to a decline in demand by households. Thinking of the relationship between income and demand discuss the following questions: 1. What are "normal" goods? Give an example in our current economy. 2. What are "inferior" goods? Give an example in our current economy.
Economics, Cost-Benefit Analysis - Year 4 Differentiating between Market Structures Simulation Prepare a table that compares and contrasts the various characteristics of the four market structures. Format the table as follows: a. Column headings should be the four market structures: 1) Perfect competition 2) Monopoly 3
Consider two firms X and Y produce identically tasting cold drinks. In order to increase the demand for its cold drink, firm X increases its advertisement outlay. However the advertising doesn't increase its demand in the long run. Explain why this must be the case.
Describe the main factors (supply and demand) affecting the current price of gasoline. Include at least two supply and two demand. Discuss at least two costs and two benefits of increasing the minimum wage. Should the minimum wage be increased?
The majority of the world's diamonds comes from Country A and Country B. Suppose that the marginal cost of mining a diamond is $1,000 per diamond and that the demand schedule for diamonds is as follows: Price Quantity $6,000 5,500 $5,000 6,500 $4,000 7,500 $3,000 8,500
Using the link provided in the integrated, access and complete the Supply and Demand simulation. Based on your learning, reading, and on the simulation, prepare 750 words and summarize the content. Be sure to address the following: a. What causes the changes in supply and demand in the simulation? b. How do shifts in supp
Deadly Labor Dispute Labor theory has a built-in harmony bias: treat workers well and they will work harder. Treat them shabbily and they'll get even. In 2000, the Firestone unit of Japanese tire maker Bridgestone and Ford Motor Co. began publicly pointing fingers at each other after a number of people were kill
A. Price discrimination for medical services can often be legal. T F b. Medicare and Medicaid cover about 80 million people? c. One must be age 65 or older to get Medicare. d. Everyone in Medicare has access to prescription drugs. e. Medicaid is available to all people above age 65. f. Monopsony power rests i
Jane spends all her income on hot dogs and caviar. Her demand curve for caviar is inelastic at all prices for caviar. Unfortunately, the accident at Chernobyl has caused the supply of caviar to fall and the price to rise. What has happened to Jane's consumption of hot dogs? Explain. (Note: you should assume that the accident at
Explain why the price elasticity of demand varies along a demand curve, even if the demand curve is linear. Please provide one paragraph response to this question.
I have answered the first part of the question but am having problems with the second part of it, I would really appreciate any help that you could give me. 1.(Stagflation) What were some of the causes of the stagflations of 1973 and 1979? In what ways were these episodes of stagflation different from the Great Depression of
The US Postal Service is facing increased competition from firms providing overnight delivery of packages and letters. Additional competition has emerged because messages can be sent via computers. What will be the effect of this competition on the market demand for mail delivered by the post office? Substantiate your argument b
For a certain commodity, the demand equation is given by D = -5p + 50. At a price of $1, twelve units of the commodity are supplied. If the supply equation is linear, and the market price is $4, find the supply equation.
If the own-price elasticity of demand for gasoline is -.2 and there is a 10% increase (+.10) in the price of gasoline, what will be the percentage change to the equilibrium demand for gasoline?