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Q1) Define supply and demand. List their determinants.
Q2) What is the equilibrium price and quantity in this market? If the actual price in this market were above the equilibrium price, what would drive the market toward the equilibrium? If the actual price in this market were below the equilibrium price, what would drive the market toward the equilibrium?
Q3) What is likely to happen to the quantity supplied of a particular cut of meat when its price rises? Express your answer as a general hypothesis of the relationship between the price and the quantity supplied of any commodity.
Q4) Distinguish between the short-run rationing function and the long-run guiding function of price.
Suppose a computer virus disables the nation’s automatic teller machines, making withdrawals from bank accounts less convenient. As a result, people want to keep more cash on hand, increasing the demand for money. Assume the Fed does not change the m..
A reason there is more competition among restaurants than computer manufacturers is:
Compute the after-tax cash flow based on a 34% combined income tax rate. If the corporation's criterion is a 15% after-tax rate of return.
Paula has set aside $60 monthly budget to attend plays and watch movies. She likes plays exactly three time as much as she likes movies. Draw her indifference curves.
Select a private-sector, for-profit firm and write a 1,050 to 1,400-word paper/business proposal in which you provide recommendations to that firm. Explain how fixed and variable costs should be adjusted to maximize profit.
1. Explain the difference between preferential trading areas and free-trade areas.
If one defines incremental cost as the change in total cost resulting from a decision, and incremental revenue as the change in total revenue resulting from a decision, any business decision is profitable.
The table below depicts the prices and total costs a local used-book store faces. The bookstore competes with a number of similar stores, but it capitalizes on its location and the word-of-mouth reputation of the coffee it serves to its customers.
In industry, how long does it take for all short-run fixed costs to become variable? Which fixed costs take the longest to become variable?
Imagine a market where there is perfect competition between two or more companies, such as a fish market where vendors offer the same products at the same price or online ticket auctions like StubHub. In this market there are four key elements to per..
The rule of 72 worksheet, use the Rule of 72 to estimate how long it would take the following investments to double in value:
What are the advantages and disadvantages of free trade for the United States? Be specific in giving examples of how free trade and off-shore manufacturing helps and/or hurts businesses, workers and consumers in the United States.
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