Reference no: EM132955141
Answer all the Questions. (Word Limit-3000-3500 words)
1. Assume that both the supply of bottled water and the demand for bottled water rise during the summer but that supply increases more rapidly than demand. What can you conclude about changes in equilibrium price and equilibrium quantity?
2. Will the equilibrium price of orange juice increase or decrease in each of the following situations?
a. A medical study reporting that orange juice reduces cancer is released at the same time that a freak storm destroys half of the orange crop in Florida.
b. The prices of all beverages except orange juice fall in half while unexpectedly perfect weather in Florida results in an orange crop that is 20 percent larger than normal.
3. Suppose that you are the economic advisor to a local government that has to deal with a politically embarrassing surplus that was caused by a price floor that the government recently imposed. Your first do that. Instead, they present you with the following list of options that they hope will get rid of the surplus while keeping the price floor. Identify each one as either could
work.
Restricting supply.
b. Decreasing demand.
c. Purchasing the surplus at the floor price.
4. Use the table below to answer the questions that follow:
a. If this table reflects the supply of and demand for tickets to a particular World Cup soccer game, what is the stadium capacity?
b. If the preset ticket price is $45, would we expect to see a secondary market for tickets? Why or why not? Would the price of a ticket in the secondary market be higher than, the same as, or lower than the price in the primary (original) market?
c. Suppose for some other World Cup game the quantities of tickets demanded are 20,000 lower at each ticket price than shown in the table. If the ticket price remains $45, would the event be a sellout?
![51_figure.jpg](https://secure.expertsmind.com/CMSImages/51_figure.jpg)
5. Briefly state the basic characteristics of pure competition, pure monopoly, monopolistic competition, and oligopoly. Into which of these market classifications does each of the following most accurately fit? (a) a supermarket in your hometown; (b) the steel industry; (c) a Kansas wheat farm; (d) the commercial bank in which you have an account; (e) the automobile industry. In each case, justify your classification.
6. Critically evaluate and explain:
a. In monopolistically competitive industries, economic profits are competed
and efficiency.
b. In the long run, monopolistic competition leads to a monopolistic price but not to monopolistic profits.
7. What information does a government need if it wants to attempt to reduce a widespread negative externality like air pollution? Who, typically, is actually in possession of that information? How do markets in tradeable emissions permits solve the asymmetric information problem affecting pollution abatement efforts?
8. Distinguish between the benefits-received and the ability-to-pay principles of taxation. Which philosophy is more evident in our present tax structure? Justify your answer. To which principle of taxation do you subscribe? Why?
Prepare the necessary journal entries for the period
: Prepare the necessary journal entries for the period 1 July 2016 to 30 June 2018 to record the acquisition of the ice cream van, depreciation
|
Effect of the process impact financial value
: What would be the effect of the process impact financial value creation on the overall value of the firm? Why? How?
|
What strategies might help mitigate resistance
: 1.Why is a communication or education plan necessary and with whom should you consult when developing the plan?
|
What is direct labour cost variance
: What is Direct labour cost variance? Illustrate with an example to be selected from the company based on the first alphabet of your mother's name
|
Changes in equilibrium price and equilibrium quantity
: Briefly state the basic characteristics of pure competition, pure monopoly, monopolistic competition, and oligopoly. Into which of these market classifications
|
Example of a personal experience
: An example of a personal experience where you participated in a team and the outcome. Was the experience a productive rewarding team or was it a disaster?
|
Components of the formula
: How does the process impact financial value creation and each of the components of the formula?
|
What is the amount of the premium on these bonds at issuance
: Quatro Co. issues bonds dated January 1, 2018, with a par value of $820,000. What is the amount of the premium on these bonds at issuance
|
Who is the best person in dr conrad office to reconcile
: Harriet Knox, Ralph Patton, and Marcia Diamond work for a family physician, Who is the best person in Dr. Conrad's office to reconcile the bank statement?
|