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Gas prices fluctuate often and in both directions. respond to the following:
How responsive do you think consumers will be to the price change when these fluctuations occur due to changes in supply? Why? Use the various determinants of elasticity to explain your answer.
How does the price elasticity of demand for gasoline impact the effectiveness of taxes on gasoline aimed at correcting a negative externality?
Consider incorporating the supply-and-demand model to demonstrate the elasticity of demand for gas and to show the effects of tax on the market for gas.
Explain how can each of the 10 principles be applied in an example or experience with which you are familiar. How do you intend to use your newfound knowledge in future economic decisions.
Assume which Sweden also Portugal both produce oil also stained glass. Sweden's opportunity cost of producing a pane of stained glass is 8 barrels of oil.
Fixed costs are costs that _______ in total, but ______ as the business activity level changes
A private-equity company is confident that by terminating Russell's money losing fruit-flavored beer coolers and by selling the women's hosiery division free cash flow can be increased $4 million annually for the next decade. Assuming these actions d..
The slope of the short-run aggregate supply curve can be explained by:
The company sales forecast to double from $1,000 in 2013 to $2,000 in 2014. Here is the Dec 2013 balance sheet: Cash-$100, accounts receivable-$200, Inventories-$200, Net fixed assets-$500= Total assets-$1,000. All assets except fixed assets must inc..
A kinked demand curve is most likely to occur when other firms. The difference between the price firms would be willing to accept for their goods and the price they actually receive is called. Under conditions of perfect competition, maximum profit o..
Discuss. “The internationalization of banking has weakened national safeguards against banking collapse, but at the same time it has made the need for effective safeguards more urgent.”
The Fed wants to increase the money supply (which is currently 4,000) by 200. The money multiplier is 3. For each 1 percentage point the discount rate falls, banks borrow an additional 20. Explain how the Fed can achieve its goals using the following..
A network carrier serves 39 spoke cities from a single hub. How many city-pairs does it serve? This same airline adds a 40th spoke city to its network using a 100 seat capacity aircraft. On a flight from this 40th spoke to the hub, how many passenger..
If combination of rational expectation and perfectly competitive markets , a decrease in aggreage demand will lead to? A. A small decrease in real GDP B. No change in real GDP C.
What are the arguments FOR trade restrictions? Why don't we restrict trade among states with the borders of the U. S.?
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