1. Please explain. What do you think will occur to the price of marijuana if its purchase and sale are legalized? Be specific as to changes in the supply and demand curves. Personal opinion welcome. 2. Please explain How can we use the price elasticity of demand to predict the effects of public policies? Please give two
(a) Third National Bank is fully loaned up with reserves of $20,000 and demand deposits equal to $100,000. The reserve ratio is 20%. Households deposit $5,000 in currency into the bank. How much excess reserves does the bank now have, and what is the maximum amount of new money that can be created in the banking system as a resu
Efficiency is a hot topic in the media regarding transportation, energy, and many other industries. Explain how perfectly competitive markets use or do not use resources efficiently. PLEASE USE ANY CITATION, EXCEPT WIKIPEDIA, ENCARTA, OR WORLD BOOK
Q1. The average total cost of operating a clinic is $800 per patient if the volume is 100 patients, and $790 per patient if the volume is 110 patients. What is the total cost at each of these two volumes? What is the marginal cost of another case within this range? Q2. Extended care facilities are paid on a per diem basis,
Kidney's (transplant) are not allocated through markets. What are the pros and cons of switching to a market for kidneys? (Note: Currently, people can volunteer to donate one of their two kidneys, and getting a kidney is dependent upon your need and prognosis (and sometimes having a relative who is a "match" donate theirs.) Plea
Amityville has a competitive chocolate industry with the (inverse) supply curve Ps =440+Q. While the market demand for chocolate is Pd=1200-Q, there are external benefits that the citizens of Amityville derive from having a chocolate odor wafting through town. The marginal external benefit schedule is MEB =6-0.05 Q. a) Withou
Exercises 1. Distinguish between the resource market and the producer market in a circular flow model. In what way are businesses and households both sellers and buyers in this model? What are the flows in the circular flow model? Application 1. The famous Swedish economist Assar Lindbeck remarked in his book on ren
1. Assume that the money market is initially in equilibrium for an economy. Explain with the aid of a diagram how the market adjusts to (i) an increase in money supply (ii) an increase in real GDP 2. Choose any economy in the world. What measures did the countryâ??s central bank adopt in the 2008 period, in the face of t
Discuss in detail ONE factor of how government involvement in the marketplace can impact or not impact the economy. Give a real life example of this factor at work. Be sure to concentrate on just this one factor and do not discuss others in your initial post.
Nominal money supply and changes in price levels affect the aggregate demand curve in different ways.
A change in the real money supply can result either from a change in the nominal money supply through Federal Reserve policy (holding the price level constant) or from a change in the price level (holding the nominal money supply constant). The change in the nominal money supply causes a shift in the aggregate demand curve, wher
Research the elasticity of beef and eggs in regards to price changes. How do supply, demand, and price controls interact to affect equilibrium price of eggs? Why do customers have a more elastic buying response to beef than to eggs?
1. Industry supply and demand are given by QD = 1000 - 2P and QS = 3P. What is the equilibrium price and quantity? At a price of $100.00, what will the quantity be? 2. The demand equation for the Widget Company has been estimated to be : Qd= 20,000 + 10 i - 50P + 20 PC Q=monthly # of widgets sold, I= average mon
Carefully explain what will happen as we move from the short run to a long run equilibrium in a monopolistically competitive industry if firms are making a positive profit in the short run. Your explanation should clearly state what will happen to the demand curve facing an individual firm and the reason why this happens.
1. What is the effect of an increase in the quantity of money? What is the difference between real variables and nominal variables? Are these variables affected by the quantity of money? If so, how? 2. What is the difference between the real exchange rate and the nominal exchange rate? If the nominal exchange rate goes from
I do not know how to work the answers for part b or c of the attached file.
Provide enough help to create at least a 250 word document to define Oligopoly & Monopolistic Competition. Please respond with a doc attachment- See attached.
PROBLEM I ABC Corp is a small Canadian firm that sells staples in Canada, which is a very competitive market. The staples can be classified as a standard commodity, with stores viewing the staples as identical to those supplied by other firms. Recent news has indicated that 1) due to the growing Canadian economy, the over
Can you please assist with the following question? please address the following questions in a 2 to 3-page I would like to choose Wal-Mart's organization 1. Why do you think it (Wal-Mart) will be an interesting focus for your application of economic ideas? 2. Why do you think macro-economics applies to
Thinking like a Macro-Economist: John Maynard Keynes and Milton Friedman Macro-economics is perhaps the most divisive area of economics. Macro-economists divide themselves into different schools of thought. Two of the biggest camps are the Keynesians and the Monetarists. Keynesians and post-Keynesians follow the theories o
1. Externalities are third party consequence of some other action. They can be positive or negative externalities and they impose a benefit or cost to a third party. Identify a positive and a negative externality. Discuss the benefits and costs associated with each type of externality. What happens to the Supply and/or Demand cu
Consider the following simplified AE function: AE = 350+0.8Y+0.1(M/P) where AE is desired aggregate expenditure, Y is real GDP, M is private sector's nominal wealth, and P is the price level. Suppose that M is constant and equal to 6000. a) Explain why the expression for AE above makes sense. Why do M and P enter the
This is a challenging question and involves algebraically solving the system of two equations given by AD abd AS curves. The equations for the curves are given by the following: AD: YAD = 710-30P + 5G AS: YAS = 10+5P-2Poil where Y is real GDP, P is the price level, G is the level of government purchases and Poil is the
What is the formula I need to use to solve the following problem, in order to determine the effect it will have on its optimal price?
The U.S. cigarette industry has negotiated with Congress and government agencies to settle liability claims against it. Under the proposed settlement, cigarette companies will make fixed annual payments to the government based on their historic market shares. Suppose a manufacturer estimates its marginal cost at $1.00 per pack,
Need help with the following questions.
Details: You have been tasked to brief the firm's finance team on an aspect of international finance and then to lead a discussion with the team. This briefing is particularly important because of the global financial crisis that began in 2007. The briefing is needed to provide more foundation for the finance team because
The president of your company, Mr. daily, has asked you to prepare a report explaining the various forms of market structure. He explains to you that the report will be handed out to the staff prior to the staff meeting next week and that it should outline the various forms of market structure. At the same time, the report shoul
There is a shortage of college basketball and football tickets for some games, and a surplus occurs for other games. Why do shortages and surpluses exist for different games?
Suppose the market for natural gas can be described by: Demand: Q(D)= 80 - 5P Supply: Q(S)= 20 - 15P Where P is the price ($) of natural gas per million BTU, Q(D) is the quantity demanded and Q(S) is the quantity supplied of million BTUs of natural gas per day. a) what are the equilibrium price P* and equilibrium Q*?
Need help with this Exercise 4. Suppose the government imposed a minimum price of $7 in the schedule of exercise 3. What would occur? Illustrate. 5. In exercise 3, indicate what the price would have to be to represent an effective price ceiling. Point out the surplus or shortage that results. Illustrate a price floor
There are 4 factors that influence the price elasticity of demand: - The availability of substitutes - The specific nature of the good - The part of income spent on the good - The time consumers have to buy the good Choose a product you have purchased in the past month from a clothing or shoe store. Describe how each of