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Q1. Studies have fixed the short-run price elasticity for gasoline at the pump at -.20. Suppose that international hostilities lead to a sudden cutoff of crude oil supplies. As a result U.S. supplies of refined gasoline drop and, in equilibrium, the quantity demanded decreases by 40 percent. If gasoline was selling for $3.00 per gallon before the cutoff, what new price would you expect to see in the coming months?
Q2. If the demand curve is much more inelastic than the supply curve, clarify whether buyers or sellers will shoulder more of the tax burden from a new tax placed on the sellers?
The trade or business of manufacturing dolls and accessories
Calculate price, quantity and social surplus for the initial state and each policy.
Compare the effects of these two policies in terms of their implications for the current account.
Semiconductor chips are used to store information in electronic products, such as personal computers. One of the early leaders in the production of these chips was Texas Instruments (TI).
Determine the quantity demanded, the quantity supplied, and the magnitude
The 2001 recession ended in November 2001, but the perception of "bad economic times" lingered into 2002 and 2003. What evidence do these graphs provide concerning the lingering perception of a recession.
How much will computers sales change by if the company increases computer price by $100 from $1,000 to $1,100.
Sharp rises in the cost of milk, grain, and fresh fruits and vegetables are hitting cafeterias across the country, forcing cash-strapped schools to raise prices or serve more economical dishes.
What is the average fixed cost of producing 4 units of output and What is the marginal cost of producing the third unit of output.
he perfectly competitive form maximizes profits by producing 10 units of output. At what price does it sell these units.
Select the most serious disadvantage of globalization (in your opinion) and make at least one recommendation
Discuss industry concentration, demand and market conditions and the pricing behavior of Kodak in the 1990's. Do you think the industry environment is significantly different today.
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