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
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
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
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
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
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
Demand and Supply Schedule for Rap Music CDs Price Quantity Demanded Quantity Supplied 10 70 million 20 million 11 65 million 40 million 12 60 million 60 million 13 55 million 80 million 14 50 million 100 million a) Using the given supply and demand schedule above, graph the supply and demand curves for rap music CD
1. If you raise the price of your good but sell more units is this a violation of the law of demand? 2. How could input suppliers ever lower your profits? 3. An investment has a useful life of 10 years. It costs $150,000. If the interest rate is 4% what stream of annual payments makes it worthwhile. (Each year has equal pay
What is the identification problem? What effect will this problem have on the regression estimates of a demand function?
1-Explain the differences between shortages and scarcity. In answering this question you should consider the difference between the short run and the long run in economic analysis. 2-Briefly list and elaborate on the factors that will be affecting the supply of the following products in the next several years. Do you think th
1. A monopolist faces demand given by: P=100-4Q and has marginal costs given by: MC=10+2Q a. Draw the demand, marginal revenue and marginal cost curves. Calculate and show how much this firm will sell and what it will charge. b. Calculate the producer surplus with monopoly and the consumer surplus with monopoly. c. How much w
Demand for microprocessors is given by P=35-5Q, where Q is the quantity of microchips (in millions). The typical firm`s total cost of producing chips is Ci=5qi, where qi is the output of firm i. a. Suppose that one company acquires all the suppliers in the industry and there by creates a monopoly. What are the monopolist`s pr
Assume the following values for the figures attached. Q1 = 20 bags Q2 = 15 bags Q3 = 27 bags. The market equilibrium price is $45 per bag. The price at a is $85 per bag. The price at c is $5 per bag. The price at f is $59 per bag. The price at g is $31 per bag. Apply the formula for the area of a triangle (Area = B
Assume perfect competition. Yoland is a small country that takes world price of corn as given. Its domestic supply and demand for corn is given by the following: Demand: D = 36-3P Supply: S = 3p-9 a. Assume initially that Yoland does not open to trade. What is the autarky equilibrium price and quantity? b. Suppose
Suppose that more companies receive permission to drill for oil in Alaska and U.S.-controlled waters. In addition, assume that the popularity of SUVs declines in favor of smaller, more fuel efficient automobiles. What will be the result on the market (supply, demand, price, and quantity) for oil in the U.S.? How does this move the supply and demand curve? In this situation the supply would be so high that it would cause a price war causing the cost of a barrel of oil to drop. Because of the more fuel efficient smaller cars the demand for gas would not be as high causing the prices of oil to drop even further. This would eventually lead to us having a huge supply of oil and a low demand for it. Question 4: Explain what factors would increase the supply (shift the supply line to the right) of a manufactured product like white bread and what factors would cause a decrease in demand (shift of the demand curve to the left) for that same product. Several factors such as natural disasters, man-made disaster, fire, and food shortages in underdeveloped countries would increase the supply of white bread. This is because the bread could be used to make sandwiches to feed everyone. On the other side of the coin over production, bread going stale, getting old and growing mildew on it would lead to a decrease in demand. All of these problems could be seen as a sign on over production by the bakery. Question 5: Explain the role of economic theory and answer the question, â??what is an economic model?â?
Question 3: Suppose that more companies receive permission to drill for oil in Alaska and U.S.-controlled waters. In addition, assume that the popularity of SUVs declines in favor of smaller, more fuel efficient automobiles. What will be the result on the market (supply, demand, price, and quantity) for oil in the U.S.? How doe
After reading this article why would you suggest that most of the Arab countries and most other third world countries have a larger population percentage under 20 than most industrialized countries? How could this affect the US reconstruction policies in Iraq and Afghanistan? The Supply and Demand for Children In Chapter 1, I distinguished between an economic force and a market force. Economic forces are operative in all aspects of our lives; market forces are economic forces that are allowed to be expressed through a market. My examples in this chapter are of market forces - of goods sold n a market - but supply and demand also can be used to analyze situations in which economic, but not market, forces operate. An economist who is adept at this is Gary Becker of the University of Chicago. He has applied supply and demand analysis to a wide range of issues, even the supply and demand for children. Becker doesn't argue that children should be bought and sold. But he does argue that economic considerations play a large role in people's decisions on how many children to have. In farming communities, children can be productive early in life; by age six or seven, they can work on a farm. In an advanced industrial community, children provide pleasure but generally don't contribute productively to family income. Even getting them to help around the house can be difficult. Becker argues that since the price of having children is lower for a farming society than for an industrial society, farming societies will have more children per family. Quantity of children demanded will be larger. And that's what we find. Developing countries that rely primarily on farming often have three, four, or more children per family. Industrial societies average fewer than two children per family.
After reading this article why would you suggest that most of the Arab countries and most other third world countries have a larger population percentage under 20 than most industrialized countries? How could this affect the US reconstruction policies in Iraq and Afghanistan? The Supply and Demand for Children In Chapter 1,
Please refer attached file for graph. The graph on the left shows the short-run marginal cost curve for a typical firm selling in a perfectly competitive industry. The graph on the right shows current industry demand and supply. a. What is the marginal revenue that this perfectly competitive firm will earn on its 60th unit
Given the current condition of the US economy, do you think US policy makers would prefer to see the $ rise in value, decline in value or stay at its current value? Discuss the advantages and disadvantages to the US economy at this time of a stronger vs. a weaker $. Frame your answer in terms of the current Aggregate Demand and
Explain what economic issues Winston Churchill discussed with Lady Astor? What does their conversation imply about the economic idea of how price affects both the supply and the demand for any good or service? Winston Churchill and Lady Astor There are many stories about Nancy Astor, the first woman elected to Britain's Parl
Let's put dollar amounts on the flows in the circular flow diagram of Figure 2.2. a) Suppose that businesses buy a total of $100 billion of the four resources (labor, land, capital, and entrepreneurial ability) from households. If households receive $60 billion in wages, $10 billion in rent, and $20 billion in interest,
In Japan potential GDP is 600 trillion yen and the table shows aggregate demand and short-run aggregate supply schedules. Price level Real GDP demanded Real GDP Supplied in the short run 75 600 400 85 550 450 95 500 500 105 450 550 115 400 600 125 350 650 135 300 700 a. Draw a graph of the aggrega
1. Please review the video clip from this link http://www.mhhe.com/economics/solman_video_mov/capital_cuban.mov 2. Answer the following questions: Why is a struggle underway in Cuba between social equality and the free market? Why did Cuba permit free markets? Who in the video wants Cuba to remain socialist? Why? Who in