You have been asked by your boss to predict what the hours of work by your employees would be following a proposed raise. you have had a flexible policy of workers choosing their hours and would like to determine whether the raise would have a huge impact on hours worked. you have the resultsof studies conducted for three other
Chp 8 17. Suppose Americans can buy any number of birdcages on the world market at a price P0. American manufacturers have an upward sloping supply curve that intersects the American demand curve at a price above P0. a. At what price must American birdcages sell? Illustrate the gains to Americans from the existence of the
You are the manager of a monopoly, and your demand and cost functions are given by 2 P=200-2Q and C(Q)=2,000+3Q , respectively. a. What price-quantity combination maximizes your firm's profits? b. Calculate the maximum profits c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price-qu
How do you solve for a, b, c, e in the equations: Qd = a-bW and Qs = c+eW when you know the equilibrium wage (or price) is $4, there are 100,000 people employed, Elasticity of demand is equal to -0.4 and Elasticity of supply is equal to 0.2?
Need some info and help Trying to figure out how to go about these. 1. In a committee meeting of the United Nations you are considering the following questions: A.When is international trade an opportunity for workers? When is it a threat to workers? B.What are some of the major challenges confronting the internatio
JockMart owns a large textile factory in a small, remote community. The JockMart factory is the only source of employment for the community, so that the firm enjoys monopsony power. The supply curve for textile workers is described by L^S = 160w, where L is the number of workers hired and w is the hourly wage. JockMart's labor d
What are the reporting reasons on why gasoline prices have been fluctuating and trending upward for the past 12 months. What are the ground reasons? Where are the online sources that can provide concrete evidence? I am unable to use the Wikipedia as a source only b/c that source can be edited by students and might not ha
A government's currency trades at equilibrium for $.30. What will happen if they try to maintain an exchange rate of $.40?
Fluctuating and increasing gasoline prices. What is your analysis on this topic and relate it to the United States economy. What are the three or four segments of our economy that are affected by fluctuating prices for gasoline. A "segment" of the economy is a particular industry or business that is national in their operation.
(See attached file for full problem description) --- 1. The OPEC Cartel has had periods of success as well as failure. Of the following factors, which does not contribute to success in a cartel? a. a low price elasticity of demand for oil (inelastic demand). b. restricted supply of other forms of energy, such as nucle
BASED ON THE BELOW. WHAT COULD I CONCLUDE? SINCE I REALLY KNOW VERY LITTLE ABOUT THE AUTOMOBILE INDUSTRY? Interaction of Fiscal and Monetary Policy Intelligent fiscal policy and appropriate monetary policy allow for a stabilizing influence on United States' economy. The government is able to take action through expansion
The question asked that suppose that the aggregate demand curve is P=120 - Q, where P is the price level and Q is real output (in billions of dollars). If the short-run aggregate supply curve (which is a horizontal line in the relevant range) shifts upward from P = 102 to P = 104, what happens to real output?
EVERYTHING MUST HAVE CHARTS IN EXCEL. The aggregate consumption function for an economy is: C=$200 billion + .75 Yd, Yd= disposable income. Assume that aggregate demand must shift by $160 billion to close a recesionary gap. A: what change in government spending will return the economy to full employment GDP?
See attached file for full problem description. Determining the Exchange Rate Use these data to answer the following questions about the market for British pounds: Price of pound Quantity Demanded Quantity Supplied (in $) (of pounds) (of pounds) ______________
America's Water Meter Industry is dominated by four firms: Rockwell, Badger, Neptune and Hersey. Rockwell has 35% market share, and the remaining share the rest. Demand is very inelastic and there is barrier to entry due to economies of scale. The firms, fearing that profits may fall to competitive levels have, have set prices c
1. Oligopoly Exhibit 1 shows demand and cost conditions for a firm in an oligopoly market. Replicate the graph. Use the diagram to answer the following questions. a. If the firms in this industry were to compete, what would be the resulting market price and quantity? Use dashed lines as a hint. Label Price as P1 a
Question 1 Consider a small open economy with a fixed exchange rate system. Suppose there is a general expectation that the central bank will revalue the domestic currency in the future (i.e. it will reduce the fixed exchange rate defined as the amount of the domestic currency per unit of foreign currency). Explain the shor
You suddenly realize that your demand estimates might have some uncertainty in them. How might you change the amount of surplus you give to the consumers because of this? When you do not know the right demand, you cannot set the right price. So, instead of setting the price first, how can you find out the right price when th
The demand for new motor homes in the United States is highly cyclical and sensitive to diesel fuel prices and interest rates. Given these characteristics, describe the effect of each of the following on the quantity demanded or the demand for new motor homes. Indicate whether the effect of each of the following is an upward o
What is meant by productivity, cost, and firm demand for one production factor. Can you please explain?
(Money Supply Versus Interest Rate Targets) Assume that the economy's real GDP is growing. What will happen to money demand over time? If the Fed leaves the money supply unchanged, what will happen to the interest rate over time? If the Fed changes the money supply to match the change in money demand, what will h
Suppose you are an aid to a government official deciding on some recently proposed excise tax on the welfare of her constituents. One way of measuring the impact on her constituents is to determine how that tax change affects the level of consumer surplus enjoyed by her citizens in her area. By using a formal analysis and estima
See attached file for full problem description. --- 17-10 10. (External Costs) Use the data in the table to the right to answer the following questions. a. What is the external cost per unit of production? b. What level will be produced if there is no regulation of the externality?
(See attached files for full problem description) There are ten firms in a competitive industry, each with MC= 40-12q + q2 . Average cost is minimized at q=12 and Average Variable Cost is Minimized at q=9 for each firm. Demand for the product is given by P=160-Q, where Q represents industry output. A. Explain why the ind
Answer all three questions. 1. Discuss short and long run costs. For the short run discuss the relationship between cost theory and production theory and the concept of diminishing returns --- what is diminishing returns and how does it shape production and cost curves. Then, discuss the relationship between short run cost cu
Why do we have such extreme diversity in pay in the US---sport stars, actors, others making very high salaries while others make much less? What does economic theory tell us on this topic?
2 A ) Every demand curve must eventually hit the quantity axis because with limited incomes there is always a price so high that there is no demand for the good. B) If the elasticity of demand for long-distance calls is 1.5 and the price of long- distance calls falls by 20 percent as a result of increased competition from th
I am confused as to how to complete question 6. Not sure if i have the correct values, and if so, how to calculate the producer, consumer and social surplus. Also, lost on the per unit tax of 10 per unit and per unit subsidy of 50 per unit. Please find work and questions attached. --- 5) Supply P = 2Q + 170 Demand P
1. You are the Chief Economist of the Antitrust Division of the Department of Justice. There is a single producer of streaming video services that has a patent on the technology so that no one else can provide the service. But it only works on high speed access services. Assume that there is also a single provider of high spee
Law of Demand and Supply What is the motivation behind each of the laws?