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What is a supply shock and how can it affect the aggregate supply curve and equilibrium GDP and prices?
The financial department of Delphi Consolidated Industries (DCI) is just starting a two-week retreat in the Canadian wilderness. The president of DCI has been approached by an investment banker who has acquired $1,000,000 in DCI bonds in one of his d..
In 2013, American Airline wa charging $ 2,386 for round trip, non-stop and unresticted ticket between Boston and Dallas, but the price has been cut in half to $ 1, 698. (1) What can you say about the price elassticity of business travel damand on tho..
Find the current exchange rates online and post the current exchange between the U.S. dollar and any other currency. Briefly describe what has happened over the past year between the two.
What nominal rate of return did the engineer receive from the bond if he held it to its maturity (on October 1, 2011)?
In perfect competition, economic profit is driven to zero as more firms join the market bidding prices down. One way for firms to maintain positive economic profit is to sell differentiated products. What sort of characteristics might a company empha..
Under which of the following circumstances is the principal-agent problem likely to be most serious. The government agency that controls the development and availability of new medical discoveries, including pharmaceutical drugs is
Consider a rancher-farmer economy. Assume that the rancher has no choice over how many cows to raise but either the farmer or the rancher (or both) can build a fence to eliminate the crop damage of $150. However, the costs of installing the fence are..
R/C Aero Specialties produces unmanned aerial vehicles (UAVs), or drones, for commercial and recreational uses. The company has updated its design to compete with Fuji Enterprises, but its production costs for this new model require a retail price th..
Countries that choose to pursue a fixed exchange rate have less or more flexibility to pursue monetary policies in line with domestic goals. A decrease in U.S. exports to Mexico will cause the supply of pesos in the foreign exchange market to increas..
In the 1980's land prices in Japan surged upward in a "speculative bubble." Then land prices fell for 11 sytaright years between 1990 and 2001. What can we safely assume happened to land rent in Japan over those 11 years? Use graphical analysis to il..
Suppose you are the manager of a golf club with monopoly power. a typical consumer's inverse demand function for your firm's product is Q=100-20Q, and your cost function is C(Q)=20Q. If you apply a two-part pricing strategy, how much would be the mem..
As a culture we do not negotiate very often - we see it as confrontational. When was the last time you negotiated something? minimum 250words
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