Explain how the market for corn would be affected if ethanol, a corn derivative, was used to fuel cars in the United States. How would the market be affected if a new technology caused corn farming to be more efficient?
Why is the incidence of a tax independent of legal liability for the tax?
Indicate whether each of the following statements is true or false, and explain why. If a statement is false or true, please provide a full explanation as to why that statement is correct or not. a. Consumer surplus is the difference between the minimum and maximum price a consumer is wiling to pay for a good. b. Producer s
Describe the determinants of varying levels of income, the factors which determine a person's wages and if these qualifications always hold true.
What are price controls? What is the effect of price controls on the market and market equilibrium.
Question 1. Draw a supply and demand graph and identify the areas of consumer surplus and producer surplus. Given the demand curve, what impact will an increase in supply have on the amount of consumer surplus shown in your diagram? Explain why? Question 2. Why are spillover costs and spillover benefits also called negative
The demand for watermelons is highest during summer and lowest during winter. Yet watermelon prices are normally lower in summer than in winter. Use a demand and supply graph to demonstrate how this is possible. Be sure to carefully label the curves in your graph and to clearly indicate the equilibrium summer price and the equil
I recently bought skim milk instead of soy milk because the skim milk was less expensive. (It could be a purchase of anything, soda, fast food meals, etc.) I used milk because that is what I specifically bought and why. 1. Please help me explain how the law of demand affected my purchase. 2. Give specific examples of how
Please read the following topic and answer those three questions below at the bottom MONEY & BANKING The Congressional Budget Office (CBO) on August 25, 2009 estimated that the accumulated deficit from 2010-19 will approximate $7.137 trillion. Fiscal deficit in 2010 is estimated at $1.3 trillion or a post-War II record
Robbie Trencheny, an 18-year-old high school senior, loaded half a dozen textbooks and novels into his Nook digital reading device as soon as he received it as a birth-day present from his parents this month. "I don't have to carry textbooks with me anymore," said Trencheny, who also bought a few books on the device for leisure
Show the effect on the U.S. construction residential housing market in the event of severe economic recession. Draw diagram to illustrate the answer
There are 2 brands of cell phones that are almost identical except for some minor features: the A-Phone and the Pomegranate. Part I Draw the demand curve for the A-Phone. Explain how the graph, price, and quantity demanded will change if the following occurs: - There is an overall increase in income. - There is an over
Draw a graph to show the impact of an increase in film developing costs on the market for 35mm cameras.
Over the last three years, as the result of decreasing prices for digital cameras, the price of developing traditional 35mm film has increased 5% annually. How would I go about graphing this impact on the market for 35mm cameras?
This would be a good opportunity to point out one very important fact. We associate monetary policy with lower or higher interest rates, but what most people do not realize is that what the Fed is actually doing is changing money supply (and not interest rates directly). When money supply changes, interest rates automatically
Recent increases in rents have caused the citizens of Elmville to vote for a rent ceiling of $1200. Assuming all rental units in Elmville are identical and the supply and demand for rental units are given by Qs = -1000 + 20P Qd = 50000 - 10P What will be the excess demand for apartments once the price ceiling is implem
1. Customers to Live Theaters, Inc. can be divided into two groups: seniors and everyone else. The inverse demand curves for each of the two groups are given below. The marginal cost (which equals the average variable cost) of serving an additional patron, either senior or everyone else, is equal to $4. Fixed costs are equal to
This is an important and widely discussed economics, politics as well as ethics problem. We will look at it only from the economics point of view. You will be studying demand and supply and this is a direct application. At one point the article I want you to read says "The ultimate solution to any drug problem is not to cu
Suppose you are a stock market analyst specializing in the stocks of theme parks, and you are examing Disneyland's stocks. The Wall Street Journal reports that tourism has slowed down in the United States. At Six Flags Magic Mountain in Valencia, California, a new Viper roller coaster is now operating and another new ride, Psycl
According to the Federal Housing Finance Agency house price index, U.S. housing prices declined throughout 2008 and 2009. What are two demand determinants and two supply determinants that might explain the broad decline in house prices that occurred in those years? Is the market currently in equilibrium?
If hurricanes destroy a large percentage of orange trees in Florida, the equilibrium price of oranges in California will ________________ because Florida and California oranges are _________________ and have a ________________ cross elasticity of demand. rise, substitutes, positive rise, substitutes, negative fall
Suppose the supply of good X is given by Qsx = 10 + 2 Px . How many units of good X are produced if the price of good X is 20? Suppose market demand and supply are given by Qd = 100 - 2P and Qs = 5 + 3P. The equilibrium price is: Suppose market demand and supply are given by Qd = 100 - 2P and Qs = 5 + 3P. If a price c
The widget industry in Springfield is competitive, with numerous buyers and sellers. Consumers don't differentiate among the various brands of widgets (no product differentiation). The industry demand curve is given by: Qd = 998 - 5Pw + 4 Y - 6Pg And the industry supply curve is given by Qs = +15Pw - 3 Wage Where Pw repres
If the AS curve shifts to the right, what happens ("increases" or "decreases") to (a) The equilibrium rate of output? (b) The equilibrium price level?
There is a supply and a demand for most goods. The result is a market clearing equilibrium price. Companies many times (especially around Christmas) supply a certain amount of the "hot/must have" product to the market. Invariably there is more demand than supply. A good example of this will be the new iPad 3 or Halo Reach vid
How would the following changes in price affect total revenue? That is, would total revenue increase, decrease, or remain unchanged? a. Price falls and demand is inelastic. b. Price rises and demand is elastic. c. Price rises and supply is elastic. d. Price rises and supply is inelastic. e. Price rises and demand is inela
The Baby Boomer generation is aging and will need more health care support (demand) over the next few years. Tens of thousands of nurses and primary care physicians (PCP) will be needed (supply) to meet this demand. Reduction in Medicare payments -- leaving PCPs scrambling to keep their practices; lack of interest in becoming a
As a manager, it is important to understand how economic principles, and specifically supply and demand, are a part of your everyday business decisions. Relate the concepts of the market equilibrating process to a real-world experience occuring in a free market. -Law of demand and determinants of demand -Law of suppl
Price ceiling sets a maximum legal price that a seller may charge, typically placed below equilibrium. What do you think of a government placing a price ceiling the next time gasoline prices rise above $4.00 a gallon?
What initial effect, if any, does each of the following shocks have on Japan's real risk-free interest rate? Please use supply and demand curve to support conclusion (please label axes & curve). a) A decrease in the Japanese money supply with no changes in prices b) A decrease in global lending to Japan c) An increase in pr
Why do economists attempting to forecast short run future changes in real GDP and employment look closely at data on business inventories and unfilled orders? What conclusion could be drawn if the volume of unfilled orders and average length of delivery times decreased while inventories increased dramatically?