Using the following schedule, define the equilibrium price and quantity. Describe the situation at a price of $10. What will occur? Describe the situation at a price of $2. What will occur? Price Quantity Demanded Quantity Supplied $1 500 100 $2 400 120 $3 350 150 $4 320 200 $5 300 30
Cigarette Smoking and Taxes (adapted from lesson in economics.about.com) Cigarette taxes are a hot topic in Economics for many reasons. Cigarettes are considered goods with a negative externality. This implies that some external parties are negatively affected by the private transaction of others. For instance, cigarettes produ
Demand and Forecasting
The bank is looking for new clients in high-growth industries. Until a few years ago, if a consumer wished to purchase music, he or she would have to buy a recording of it at a store, but there is only a limited supply of compact discs, tapes, or records at any given store. Because of advancements in technology, consumers can no
From Figure 8-4, determine the effect of a 33 percent import tariff on commodity X. The tariff-inclusive price will be $3(1+.33) = $4. What are the impacts of tariff on domestic consumption, domestic production, imports, and government's tariff revenue? Please show the numbers, for example, the domestic consumption will decr
Assume that S and D are neither perfectly elastic nor perfectly inelastic. Assume that market for Jelly is initially in equilibrium. Let's call this initial equilibrium price and quantity as P1 and Q1 respectively. a)Explain what will happen to demand for Jelly if the price of peanut butter ( a complimentary good) has droppe
I need detailed answers for these problems. They are core problems to prepare for the exam. (Gwartney, p. 78, #2) What is being held constant when a demand curve for a specific product (shoes or apples, for example) is constructed? Explain why the demand curve for a product slopes downward to the right. (We gave two reasons
With Jan 1st, 2000 being the new millennium, many predicted worldwide shortages of champagne, lobster and other New Year delicacies. New England and Canadian wholesalers began stockpiling lobsters it the first half of 1999. Boston dealer James hook ordered 675,000 kilograms which is 50% more than he did last year. The anticipate
Consider three supply & demand scenarios in this question. In each case, we have a perfectly competitive market and the market demand curve is given by P = $100 - Q where P is the market price and Q is the market quantity. In the first scenario, the market supply curve is given by P = $50. In the second, the market supply is giv
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a. Suppose that someone told you that an increase in the price of DVD players caused a decrease in the demand for DVDs. Is this what you would predict? Why or why not? b. Suppose that someone told you that an increase in the price of gasoline caused a decrease in the demand for public transportation. Is this what you woul
What were the effects of the Big Dig in Boston? Did spending on road repair contribute to the boom in other industries? If so, how? Discuss the spending/investment effects on the economy.
Nature's Green Inc., a manufacturer of alfalfa tablets sold in health - food stores, currently operates just outside of Meno,California. Nature's Green is considering two alternative proposals for expansion, because it has run out of acreage to grow its organically-farmed alfalfa. It has found the following sites where farmers
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
_______ 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.
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
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
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
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?
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