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Consider the following two excerpts from articles in the Wall Street Journal: (From Feb. 2003) An attempt by major airlines to raise fares $20 per roundtrip ticket fell apart over the weekend as Northwest Airlines, the fourth largest carrier, refused to go along … By yesterday morning, all airlines had rolled back prices. (From Aug. 2003) Northwest Airlines triggered a major round of discounting last week when it launched a fare sale for late summer and early fall travel – setting off a chain reaction in the industry. During the course of one day, airlines cut fares on nearly 35,881 routes. (a) Briefly explain why airlines might be more likely to match price cuts than price increases. (b) Which theory of oligopolistic behavior does the above situation most resemble?
If required reserve ratio is raised and people decide to hold more cash instead of depositing, how is the money supply affected?
Describe the effects of decrease in the population growth rate on the golden rule quantity of capital per worker and on the golden rule savings rate.
In a market economy, every resource will tend to be paid according to its marginal product. Highly productive resources will command high prices, whereas less productive resources will command lower prices.
Make sure to make available examples of real world to strengthen your position of wherever this might be case
The purposes of assessing the consequences of these provisions for strategic decision making.
What is price of an additional dollar of local spending in each case. Which of two methods do you think would lead to higher levels of local spending on roads. Explain your answer.
Assume that the equilibrium price of DVD players increases and the equilibrium quantity increases. Illustrate which of the following best fits the observed data.
Say y store it as cash in a mayonnaise jar in kitchen cabinet. What would this do to circular flow of income and spending. How would businesses react to household hoarding.
The bureaucratic form of government is so prevalent in public agencies and tends to result in a slower paced, less consumer oriented management
A major state university in the South recently raised tuition by 12%. An economics professor at this university asked his students, "Due to the increase in tuition, how many of you will transfer to another university.
In your paper, write your first-person account of how human interactions in your community have been realized.
Suppose there is an early freeze in California that reduces the size of the lemon crop. Elucidate what happens to consumer surplus in the market for lemons.
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