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Supply and Demand

AD + AS Curve

19. Evaluate the effect of the following on the AD curve, AS curve, equilibrium price level and equilibrium output in the U.S. (a) The U.S. imposes tariffs on foreign goods to promote domestic industry. In retaliation, foreign countries impose tariffs on U.S. goods. (b) Congress decides to decrease personal income taxes, a



Detailed Explanation to Microeconomics

Study questions for a final. 1. Which of the following is true? a. 0 When price increases in the elastic range of the demand curve, total revenues will increase. b. 0 When price decreases in the elastic range of the demand curve, total revenues will decrease. c. 0 When price increases and demand is unit elastic, t

The model of perfect competition

The perfectly competitive firm takes the equilibrium price set by the market and maximizes profit by producing where price, which also equals marginal revenue, is equal to marginal cost. The level of profit earned depends on the relationship between price and average total cost. Graph the perfectly competive industry of market.

Economics: Discussion Question

Read the following article from The Wall Street Journal (see attachment): More Car Plants at Risk/ Capacity Glut Spurs GM, Chrysler to Plan Factory Closures 1. The article relates many plant closings, if the automakers close plants what is the affect on total costs? Fixed costs? Marginal Total Costs? 2. The article menti

An Explanation of Exchange Rate

Hi, I need some assistance answering the following two questions: 1. What are the different types of exchange rate, their advantages and disadvantages? 2. During the middle years of this decade, the exchange rate of the U.S. dollar has declined against the currencies of its major trading partners. You would expect this t

Market Equilibruim and Profit Maximization under Perfect Competition

Market Equilibrium and Profit Maximization under Perfect Competition The supply and demand equations for a hypothetical perfectly competitive market are given by QS = -100 + 3P and QD = 500 - 2P. a) Find the market equilibrium price algebraically. b) In Excel, use the above equilibrium price and the cost data fro

Demand and Supply

Demand and supply functions of tomato are given below: Qd = 6,000 - 4,000P Qs= -1000 + 10,000P A. Plot the demand and supply functions on the axis below B. At a price of $ 1.0 per tomato,.......... tomatoes is the maximum amount that can be sold. A price of $......... per tomato is the maximum price that consumers will

Economy- Discussion Questions

I am looking for a serious OTA knowledgeable in this area of expertise. If you are using any reference, please include citations. As you think about this question bear in mind that we can fix or hold constant any of the variables in an economic situation the changes will be reflected in the other variables, we can hold pri

10 Short Answer questions on International Economics

There are 10 short answer questions posed on International Economics. Guidelines for answers: * 5-point questions should be answered in 2 paragraph. * 10-point questions should be answered in 3-4 paragraphs. * 20-point questions should be answered in 5-6 paragraphs. * Use diagrams/models if and when they

Demand and elasticities

1). Consider the demand for computers. For each of the following, state the effect on demand: a.An increase in consumer incomes. b.An increase in the price of computers. c.A decrease in the price of internet service providers. d.A decrease in the price of semiconductors. e.It is October, and consumers expect that compute

Answer questions

1. Discuss the income and consumption relationship make sure to define marginal propensity to consume. If you received an extra dollar, how much of it would you spend? 2. Why is the aggregate demand curve downward sloping? Specify how your explanation differs from the explanation for the downward sloping demand curve for


Please see attached. It is easier to read than below. 1 U.S. real GDP is substantially higher today than it was 60 years ago. What does this tell us, and what does it not tell us, about the well-being of U.S. residents? 2. In a simple economy, people consume only 2 goods, food and clothing. The market basket of goods

Article Analysis: discuss the role of consumption in the macro economy.

Please see below link. As US shoppers retreat, can world thrive? Consumers were the biggest engine of global growth. But indebtedness prevents that now. By Peter Grier | Staff writer of The Christian Science Monitor from the October 23, 2008 edition In 500-600 words

Demonstrate the effects on Supply, Demand, market prices, and market quantities of anti-pollution (Ethanol) laws. Show how the corn market is affected then show how this affects other markets.

Question 1: Some states are requiring that ethanol be mixed with gasoline to comply with anti-pollution laws. Ethanol can be made from corn. What effect are these policies having on the equilibrium price and quantity of corn? Question 2: Corn is a key input in the poultry, dairy, hog, and cattle industry. What effect has t

Economics - Supply, Demand and Surplus

Illustrate Producer and Consumer surplus with Supply and Demand Curves. Also a) Find the equilibrium price (where supply equals demand) b) Find the consumer's surplus and the producer's surplus at equilibrium by solving an Illustration.

Supply and Demand Discussion

Visit and read the material posted about supply and demand. Explore the concepts of supply and demand by using the interactive features on the graphs. Use the questions following the diagrams to guide your exploration. Visit parts 1, 2, & 3 of the

Managerial Economics-Perfect competition

Q5. Ten competitive widget makers each have the following cost structure: Ci = 0.005qi2 + 4qi + 200 i = 1, 2,....,10 (a) What is the short-run supply curve for each firm? (b) What is the industry supply curve? (c) If market demand is: Q = 6,500 - 500p What are short-

Market Trend notes

Describe market trends OPEC will face Explain your conclusions. Address how each of the following will change or will not change, and why: a. Market structure b. Impact of new companies entering the market c. Prices

Managerial Economics

I'm having trouble working through this problems. I have the solutions to use a check values but, don't understand the process used to arrive at those values. Could you please explain step by step. Thanks! Q3. The Potash Corporation of Saskatchewan (PCS) and two small producers supply a particular fertilizer market. The s

Multiple Choice (3 questions)-Macroeconomics

1) If the Fed printed too much money, money's relative price would _________ and the money price of goods would ___________. a. fall; rise b. rise; fall c. fall; fall d. rise; rise 2) If workers begin to expect more inflation in the future, then we would expect that: a. the short-run aggregate supply c

Perfect Competition

In 2001, the box industry was perfectly competitive. The lowest point on the long-run average cost curve of each of the identical box producers was $4, and this minimum point occurred at an output of 1,000 boxes per month. The market demand curve for boxes was Qd = 140,000 - 10,000P where P is the price of a box (in dollar

Marketing: Preliminary market research indicated that target market for IPT

2-3 page MS Word document Details: Preliminary market research indicated that target market for IPT has the following characteristics: Age groups: young adults, middle-age adults Income levels: from lower middle-class and upward Consumer groups: individual consumers and businesses Buying method: currently, 35% would bu

Market trends Hershey's might face

Future Market Conditions of Hershey I just need to address the following topics: A. Market Structure B. Impact of new companies entering the market c. Prices

Supply and Demand Model

Consider you are analyzing the market for minivans. What will be the impact on the equilibrium price and equilibrium quantity of each of the following events on the minivan market? Justify your answer using the supply and demand model. a. A strike by steelworkers raises steel prices. b. Engineers develop new automated mac

Market price

The domestic demand and supply for coffee are Qd = 40,000 - 200P and QSD = 10,000 + 300P. The foreign supply is QSF = 20,000 + 100P. What is the domestic market price of coffee? A. 12.3 B. 15.0 C. 16.7 D. 18.3 Please show step/calculations