Changes on the equilibrium price and quantity

Assignment Help Finance Basics
Reference no: EM131189989

a. The market for cell phones is initially in equilibrium. Smart Phone introduces a new phone that provides radically improved services for consumers at the same time that the Federal government decides to implement an excise tax on cell phone producers. Describe the effect of these changes on the equilibrium price and quantity in this market. Assume that this new phone only affects consumers' tastes and preferences.

b. The market for bicycles is initially in equilibrium. The Surgeon General announces that a study has been done that indicates bicycling is a major contributor to good health for those who bicycle regularly. At the same time the price of gasoline increases due to political unrest in the major oil producing regions of the world. Describe the effect of these changes on the equilibrium price and quantity in this market.

Reference no: EM131189989

Questions Cloud

Explain the ethical and legal implications : Explain the ethical and legal (if any) implications if statements such as the one you chose would continue. What might be lost in your workplace if the statements are allowed? Include at least one resource you could use to help your conversation. ..
Describes two viewpoints on the expanded homeland security : Describes two viewpoints on the expanded homeland security bureaucracy that resulted from the creation of the DHS. Take a position on the expansion debate. Support your position with facts from the text.
George opportunity cost of producing : What is George's opportunity cost of producing one loaf of bread? What is George's opportunity cost of producing one meatloaf? What is Martha's opportunity cost of producing one loaf of bread?
What are characteristic and conceptual aim of hi-tech design : What are the characteristics and conceptual aims of "hi-tech" design? Use an object from Chapter 15 to support your answer.
Changes on the equilibrium price and quantity : At the same time the price of gasoline increases due to political unrest in the major oil producing regions of the world. Describe the effect of these changes on the equilibrium price and quantity in this market.
What would be the value of the investment : The treasurer of a major U.S. firm has $36 million to invest for three months. The interest rate in the United States is .24 percent per month. The interest rate in Great Britain is .30 percent per month. What would be the value of the investment if ..
Identify one statistic of the transatlantic slave trade : Identify one statistic or aspect of the transatlantic slave trade that you find most revealing about the human cost of European expansion into the New World.
Analysis of motivation of buying behaviour of consumer : Analysis of Motivation of Buying Behaviour of Indian Consumer and the Demand for Luxury International clothing line - a Study on Louis Vuitton
Market supply curve given the above information : a. What is the market supply curve given the above information? (Hint: you might find it helpful to draw a sketch to guide your work here.) b. What is the equilibrium price and quantity in this market?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the wacc for a company with after tax costs of

what is the wacc for a company with after tax costs of equity preferred and debt equal to 13 9 6 if equity makes up

  You have been offered a bond for 1250 the bond pays 60

you have been offered a bond for 1250. the bond pays 60 semi-annual interest and will mature in 12 12 years. if the

  What is the actual price of the sofa

You are buying a sofa. You will pay $200 today and make three consecutive annual payments of $300 in the future. The real rate of return is 14.1 percent, and the expected inflation rate is 4 percent. What is the actual price of the sofa?

  What is the firms value of operations

If the weighted average cost of capital is 14%, what is the firm's value of operations, in millions?

  Calculating the weighted cost of capital for a firm

In this task, you will be calculating the weighted cost of capital for a firm using the book value of the components and the concepts presented in this phase.

  Research bank of america and access the companys web page

research bank of america and access the companys web page on the internet to read their most recent annual report. the

  The town''s population is expected to grow

A small town has a current population of 20,000 permanent residents. The town's population is expected to grow at a rate of only 0.5% per year at least for the next t

  Which method of financing would you recommend

The firm's CEO is deciding whether to issue debt or equity in order to raise the funds needed to finance an upcoming project. Which method of financing would you recommend? Why?

  How much would the roe change in response

Assuming that sales, operating costs, assets, the interest rate, and the tax rate would all remain constant, by how much would the ROE change in response to the change in the capital structure?

  The perez company has the opportunity to invest in one of

the perez company has the opportunity to invest in one of two mutually exclusive machines that will produce a product

  Doublewide dealers has an roa of 10 a 2 profit margin and

doublewide dealers has an roa of 10 a 2 profit margin and an roe of 15. what is its total assets turnover? what is its

  Assume that a corporation has 100000 of taxable income

assume that a corporation has 100000 of taxable income from operations plus 5000 of interest income and 10000 of

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd