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Demand & Supply

Money and Financial Markets

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

Discussion Question

#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

Income and Demand

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.

Description of Equilibrium Price and Quantity

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

Supply and Demand simulation

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

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 killed driving Ford's Explorer vehicles when the tires failed. Were the failures due to inappropriate tire pressure, the tires' design, the Explorers on which the tires were mounted, the speed at the time of failure, or perhaps a combination of these factors? Princeton economists Alan Krueger and Alexandre Mas have a completely different explanation. They noted that a disproportionate number of faulty tires were made in Bridgestone's Decatur, IL plant where there had been a bitter labor dispute. They claim that labor strife was "a major contributor to faulty tires - though not, as the union argues, because strikebreakers were incompetent." It appears that tires made at Decatur during a 1994-1996 labor dispute were more likely to fail than tires made there earlier or later. They were also more likely to fail than tires made at Bridgestone's nonunion plant in Wilson, NC, or its plant in Joliette, Quebec. The bitterness broke out when Bridgestone began pressing for wage cuts and 12-hour shifts in January 1994. In July the workers struck. Using replacements, management imposed their 12-hour shifts and kept production moving along. In May 1995, the workers gave up, accepted lower wages and 12-hour shifts, and worked alongside the replacement workers. The economists found that Firestone tires made during the labor strife in Decatur were 376 percent as likely to prompt a complaint to the National Highway Transportation Safety Administration than tires made in Wilson or Joliette. At times of labor peace, Decatur tires were 14 percent less likely to prompt a complaint. Source: David Wessel, "The Hidden Cost of Labor Strife," The Wall Street Journal, January 10, 2002, p. A1. IN 250 WORDS PLEASE ANSWERS THE 5 QUESTIONS BELOW: Questions: 1. Is this a case of sabotage? 2. Does the case suggest that squeezing workers, even in an age of weakened unions, can be bad management? 3. Is this a case where social and political forces are at work? 4. Does this case illustrate the derived demand for labor? If so, how? 5. Does this case illustrate the elasticity of the supply of labor? If so, how?

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

Price discrimination for medical services can often be legal. T F

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

Stagflation

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

Law of supply, equilibrium and government intervention

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

Microeconomics - Elasticity and Equilibrium

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?

relationship between customers, supermarkets supply/demand

I am having trouble understanding the supply and demand relationship between supermarkets and their supply of shopping trolleys to customers, and the customers demand for the trolleys. At first glance it appears that no market exist because trolleys are given to customers for free, but this can't really be the case. For example

Finding Equilibrium Price & Quantity, Elasticities

In the following table is data that describe the market for gasoline in a small town. For each given price there is a quantity supplied (QS) and a quantity demanded (QD). Price QS QD 0.5 30 193 0.6 35 186 0.7 40 180 0.8

Supply and Demand , Equilibrium

1. (Demand and Supply) How do you think each of the following affected the world price of oil? (Use demand and supply analysis.) a. Tax credits were offered for expenditures on home insulation. b. The Alaskan oil pipeline was completed. c. The ceiling on the price of oil was removed. d. Oil was discovered in the North Sea.

Supply and Demand and Why Pricing Varies from City to City.

Hello could you please assist me with this assignment. I have visited the realtor.com website to complete my assignment below to try and figure out how supply and demand affect the prices of homes, but I can't figure it out and I'm frustrated because I will be purchasing a home within the next year and know how valuable this inf

Economic analysis of events

Please help with the following demand and supply problems. Provide at least 100 words in the solution. 1. Levi Strauss successfully markets Levi jeans on the History channel as a way for older men to stay young forever. What will happen in the jeans market ceteris paribus? 2. A tomato blight hits the South and wipes out

Economics - Equilibrium Price and Quantity Problems

Please help with the following problem. The demand and supply functions for sweatshirts (the basic grey kind) are as follows: Demand Supply Quantity Quantity Demanded Supplied Price (per period) Price (per period) $10 15,000 $10 22,000 9

Inelastic Supply Curve and the Demand Curve

Using graph(s) compare the impact on price, quantity and total revenue when: A) an elastic demand curve increases along a perfectly inelastic supply curve B) an inelastic demand curve increases along a perfectly inelastic supply curve NOTE: Assume the increase in demand in both cases are of the same size. This is just

Constrained Resource

Banner Company produces three products: A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow: Product A B C Selling price $ 61 $ 91 $ 81 Variable costs: Direct materials 27 14 41 Direct labor 12 32 16 Variable man

Market Nature and the Supply of a Product

There is no such a thing as a product B - so substitute your own "real product" for Product B - for example, Product B could be "bananas" and consider what would happen if bananas became more fashionable, the price of a substitute for eating bananas decreases (for example, oranges), etc. What effect will each of the follow

Supply and demand

There is no such a thing as a product B - so substitute your own "real product" for Product B - for example, Product B could be "bananas" and consider what would happen if bananas became more fashionable, the price of a substitute for eating bananas decreases (for example, oranges), etc. 1. What effect will each of the fol

Optimal level of pollution

Assume an economy of two firms and two consumers. The two firms pollute. Firm 1 has a marginal savings function of MS1(e) = 5-e where e is the quantity of emissions from the firm. Firm 2 has a marginal savings function of MS2(e) = 8-2e. Each of the two consumers has a marginal damage MD(e) = e, where e in this case is the total

Market and Market Structure

I need some help with the attached. Given the following graphs and information answer the following questions (a) - (c) (1) Q*=100,000 (2) Pmarket = $25 (3) q* = 2500 (4) ATC at q* = 20 -make sure to show work and method for all of the questions. Graphically: (a) How many firms are supplying

Demand Curve Questions

Need help answering these questions? Listed Below 1. The price of Pepsi Cola increases from $0.50 per can to $0.75 per can, ceteris paribus. Will this cause a movement along the demand curve for Coca-Cola or a shift in the demand curve for Coca-Cola? In which direction (be specific, not just left or right)? Why? 2. The pr

Equilibrium Quantity and Prices

Assume that the weekly supply of 16 oz bottles of soda at convenience stores in the Twin Cities of Minneapolis and St. Paul is a function of price such that: Qs = -20 + 80P Where Q is the number of sodas sold in convenience stores (in thousands) and P is the soda price. Assume demand is perfectly elastic at a price of $ 1

Demand and Supply Curves

1). Suppose the demand and supply curves for a product are given by Qd = 500 - 2P Qs = - 100 + 3P a.Graph the supply and demand curves. b.Find the equilibrium price and quantity. c.If the current price of the product is $100, what is the quantity supplied and the quantity demanded? How would you describe this situation

Natural log function

In Qx = 3-0.5 in Px - 2.5 In Py + lnM + 2lnA ln being natural log Where Px = $10 Py = $4 M = $20,000 A - $250 a) Determine the own price elasticity of demand and state whether demand is elastic, inelastic or unitary elastic b) Determine the cross price elasticity of demand between good X and good Y and state wheth

Determining equilibrium quantity and price

The demand and supply functions are given below. QD = 500 - 2P QS = -100 + 3P Graph the supply and demand curves using Excel. Find the equilibrium price and quantity. If the current price of the product is $100, what is the quantity supplied and quantity demanded? How would you describe this situation? What woul

Demand elasticities

Suppose that the demand for Dell laptop computers) can be characterized by the following point elasticities: (own) price elasticity = -1.9, cross-price elasticity with computer printers = -2, and income elasticity = +1.1. Based on these numbers answer the following questions. Explain your answers and show your work. a.If t

Select a company that uses (or has used) dynamic pricing

Select a company that uses (or has used) dynamic pricing. Using the Library, the Internet, and your course materials, briefly explain how the company uses dynamic pricing. Discuss the benefits and drawbacks of dynamic pricing for that particular company. Conclude with a summary of your findings (Perloff, 2007). In your own wor