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Two events occur simultaneously in the market for automobiles: (1) an improvement in assembly line 'technology' and (2) the economy enters a 'recession' (which decreases 'income' of consumers). An economist would predict with certainty that equilibrium quantity will rise
Even at these extreme prices, however, the station owner sold an average of 3,000 gallons per week, half of this at night. Despite catcalls, pickets, and even vandalism from angry motorists during the gasoline crisis, the owner "stuck by his pumps..
What do Tom's indifference curves relating Hamburgers (horizontal axis) to Hot-dogs (vertical axis) look like Graph and explain the shape of your indifference curves. Do these indifference curve imply that Tom will only eat hamburgers
Explain why does the minimum salary seem to have the greatest impact on teenagers.
Illustrate what are the basic provisions of a collective bargaining agreement. Explain the differences between meditation and arbitration.
The New York Times reports that Wal-Mart has decided to challenge Netflix and enter the online DVD by mail market. Because of economies of scale, Wal-Mart has a slight cost advantage relative to Netflix. Wal-Mart is considering the use of a limite..
A local market for three bedroom rental units is depicted by the following demand and supply equations;
the average tax charge is $95. Assuming a normal distribution as a standard deviation of $10, use the approximate areas beneath the normal curve.
Describe (in a sentence or two) the short run profit maximization condition when labour is the only variable input? What will happen to the labour demand if price of the output goes up?
In the model of a dominant company, assume that the fringe supply curve is given through Q = -1 + 0.2P, where P is market price and Q is output. Demand is given by Q = 11 - P.
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
Assume that the Current Account Balance is initially positive for one country. Assume that a permanent positive shock to production affects the country which initially had a positive current account balance.
For each of the following events, state whether the aggregate demand curve would increase, decrease, or stay the same.
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