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?
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
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
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
Consider the demand and supply curves for several markets - the market for mineral resources, the market for wheat, the market for sugar, and the market for motor homes. Indicate whether the effect of each of the following is an upward or downward movement along a given demand (or supply) curve, i.e. no effect on demand or suppl
Market shortages and other concepts are examined in a multiple-choice quiz given with detailed answers.
1. When there is a shortage in a market, prices are likely to rise because: A. Buyers do not wish to buy as much as sellers want to sell. B. Some buyers will attempt to outbid other buyers for the available units of output. C. Higher prices will induce sellers to reduce their production. D. All the above. 2. David
(a) During the recession we have seen a significant increase in unemployment. Use the model of supply and demand to illustrate what has happened. (b) It is a common observation that wages are â??stickyâ? downwards. Discuss the implications of this in relation to part (a) of the question.
Devise a supply and demand diagram for oil showing the effect of a global recession, then explain OPEC's objectives and policies.
i. Consider the supply and demand for oil. Starting from a point where supply and demand are in equilibrium, explain with the use of a diagram how a global recession is likely to affect the equilibrium price and quantity of oil bought and sold. How do the slopes of the supply and demand curves affect your analysis? ii. What o
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
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?
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,
The French government has recently raised the retirement age, a decision which is opposed by a large fraction of the French public, especially French students. Use the supply and demand curve to provide an explanation for the opposition of students based on self-interest. (b) To what extent should managers base their plans on
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
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 $1200 plus $2 for each DVD; supplier B has no set-up fee and will charge $4 per DVD. The station estimates its demand for the DVDs will be given by Q=1,600-22
Consider the supply of money graph above. What has happened to the quantity of money demanded?
I have some economics questions that I need help with. They are in the attached file. Thanks!
Explain what natural monopoly is in terms of the relationship between cost curves and the demand curve. If the market is left to itself, what price and output will result?
One of the major issues in macroeconomics is disagreement in the debate over policy activism versus policy rules. What exactly is that disagreement? Any implications?
Citrus Speculation and Forecasting, Inc. has been hired by a private consortium of orange growers to predict what will happen to the price and output of oranges under the conditions below. What are your predictions? Sketch a graph. a. A major freeze destroys a large number of orange trees in Florida. b. The scientists in the a
In our treatment of the Ricardian model We have focused on the case of trade involving only two countries. Suppose that there are many countries capable of producing two goods, and that each country has only one factor of production, labor. What could we say about the pattern of production and trade in this case? (Hint: Try cons
See the attached file. Suppose that the technology of manufacturing widgets is that every firm entering the market has the same total cost curve, as follows: TC=1000+5Q+0.1Q^2 Where : TC=Total cost per unit time Q=Number of widgets produced per unit time The market demand for widgets is: Q=700-8P Where P=price ($/wi
Explain why the cost structure associated with many kinds of information goods and services might imply a market supplied by a small number of large firms. (At the same time, some internet businesses such as grocery home deliveries have continually suffered steep losses regardless of scale. Explain why?) Could lower transaction
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
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
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
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
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
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
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
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