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Supply and Demand

The effect of capital inflow on the average wage of US workers is illustrated.

During the 1980s, 1990s, and the first decade of the 21st century, the United States experienced a significant inflow of capital from abroad. For example, Toyota, BMW, and other foreign car companies built auto plants in the United States. a) Using a diagram of the US capital market, show the effect of this inflow on the rental

Answer these six macroeconomics questions

1. Define transfer payments and give an example. Explain why transfer payments are not included in GDP. 2. Which components of GDP (C,I,G,X,M) would be affected by the following: a. You buy a pizza. b. You buy a new house. c. Tennessee resurfaces Interstate 40. d. You buy a Lamborghini. e. You buy a new stove. 3. Th

Demand and Supply

Consider the market for milk. For each of the following events, state (a) whether it affects supply or demand (or both, or neither), (b) which direction supply/demand shifts, (c) the effect on price, and (d) the effect on quantity. 1. The price of orange juice, a substitute, rises. 2. In order to support dairy farmers, the g

Economic Concepts and Trends in Consumption Patterns

Using the Internet, and/or other sources of literature, locate an article concerning trends in consumption patterns. Prepare a 1,050-1,400-word paper in which you: - Define Economics - Define Microeconomics - Define Law of Supply - Define Law of Demand - Identify the factors that lead to a change in supply and a change i

Income Effect on Consumption

Question: Jane spends all her income on hot dogs and caviar. Her demand curve for caviar is inelastic at all prices for caviar. Unfortunately, the accident at Chernobyl has caused the supply of caviar to fall and the price to rise. What has happened to Jane's consumption of hot dogs? Explain. You should assume that the accident

Detailed answers to managerial economics questions

Indicate whether each of the following statements is TRUE or FALSE and explain your answer. a. If a monopolist is producing a level of output at which demand is inelastic, the firm is not maximizing profits, and increasing output will decrease total revenue b. When a monopolist maximizes profits, the price is greater than

Existing Goods or Services Business Proposal

Select an existing good or service from the Will Bury's Price Elasticity, Incremental Costs, or Thomas Money Service Inc. scenarios, or select an existing business with which you are familiar. Please provide help on writing a business proposal to improve an existing good or service for the chosen company. Include assumptions

Unemployment Benefits

Suppose that the unemployment benefits provided by the private sector (firms) are increased permanently, please answer the following questions: A) What will happen to Y (GDP), r (real interest rate), P(price level), and I(investment), in the short run? B) What will happen to Y, r, P, and I, in the long run?

Federal Reserve Spending & Consequences

1. Suppose the Federal Reserve sells government securities from its existing holdings to the financial sector and the non-bank public. Trace through the expected consequences of this secondary market action on the banking system - reserves, loanable and investable funds, and deposits; financial markets - bond and stock prices,

DVD Promotion in a Television Station

A television station is considering the sale of promotional DVDs. It can have the DVDs produced by one of two suppliers. Supplier A will charge the station a set-up fee of $1,200 plus $2 for each DVD. Supplier B has no set-up fee and will charge $4 per DVD. The station estimates its demand for the DVDs to be given by Q-1,600-200

Supply of Money Graph

Consider the supply of money graph above. What has happened to the quantity of money demanded?

Finding Optimal Output and Profit Level

See the attached file. Suppose that the technology of manufacturing widgets is that every firm entering the market has the same total cost curve, as follows: TC=1000+5Q+0.1Q^2 Where : TC=Total cost per unit time Q=Number of widgets produced per unit time The market demand for widgets is: Q=700-8P Where P=price ($/wi

Money Demand and the Equilibrium Interest Rate

During the summer of 1997, Congress and the president agreed on a budget package to balance the federal budget. The "deal," signed into law by President Clinton in August as the Taxpayer Relief Act of 1997, contained substantial tax cuts and expenditure reductions. The tax reductions were scheduled to take effect immediately, ho

Currency versus the dollar

Suppose the value of the French Franc in terms of the dollar is: 50 on October 12 , and 44 on October 17 . By how much has the Franc appreciated or depreciated against the dollar? The value of the Franc rises against dollar by 12 The Franc has actually depreciated by 12%. The Franc has remained consta

The Federal Reserve System and the regulation of the money supply

1. The Federal Reserve System regulates the money supply primarily by: controlling the production of coins at the United States mint. altering the reserve requirements of commercial banks and thereby the ability of banks to make loans. altering the reserves of commercial banks, largely through sal

Goods and services questions

1. Give an example of a good you purchase or market at your workplace to show why demand curve slopes downwards and why supply curve slopes upwards? 2. What factors shift your demand for goods (note: price is not a demand shifter)? Give an example of how a demand determinant shifted your demand for a good. 3. Describe a r

Absolute and comparative advantage

1. Answer the following series of questions given the data for Israel and Canada below. Daily output: Israel can produce 100 computers or 50 tanks Canada can produce 40 computers or 15 tanks Which country has the absolute advantage in the production of tanks? Why is it this country? Which country has the comparative

Operations and Process Management

Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,000 units. Southeastern estimates its annual holding cost for this item to be $ 25 per unit. The cost to place and process an order from the supplier is $ 75. The company

Demand and Supply Curve: Movement

1. What are possible causes of a movement up or down along the demand curve? What are possible causes of a movement up or down along the supply curve? What the short and long-term effects of these changes can be? 2. What are possible causes of a rightward or leftward shift in the demand curve? What are the possible causes of

Finding Optimal Output Level etc.

Redstone Clayworks, Inc. is located in Sedona, Arizona and manufactures clay fire pits for patios. They are one of about two dozen firms around the world that manufacture and sell clay fire pits for retailers such as Home Depot Lowe's Front Gate, and other upscale home product chains. There is virtually no product differentiat

Supply and demand of park admission

The problem is this: d. Suppose there is a series of snow storms, what does it do to the supply and demand curves? What about if the wages for park rangers increased? Show direction of change on your graph, e. Suppose the prices increases from $2 from the equilibrium price. Use your supply and demand curves to determine th

Demand and Supply curves

The supply and demand for the paper firm is given by: QS=100P-5000 and QD=0.5 i + 0.2A-100P+5000 where Q is the quantity per year, P is price, I is income per household, and A is advertising expenditure. a. If A=$10,000 and I =$25,000, what is the demand curve? b. Plot the demand curve found in part A wit

Economic short answer

A limousine service is located on the north side of Indianapolis. It specializes in transporting people to and from the Indianapolis airport, although it will deliver people anywhere in the Indianapolis area. It competes with taxis and public transportation as well as people deciding to drive their own cars. The demand for the f

Perfect Competition

Use the following data for the exercises below. Price Quantity Supplied Quantity Demanded $20 30 0 $18 25 5 $16 20 10 $14 15 15 $12 10 20

Need help understanding demand and supply factors

4. â??Competition in quality and service may be just as effective as price competition in giving buyers more for their money.â? Do you agree? Why? Explain why monopolistically competitive firms frequently prefer nonprice competition to price competition. 9. Why is there so much advertising in monopolistic competition