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Demand, Supply, and Market Equilibrium: Think about a product that you have purchased recently (e.g. soda, diapers, takeout meals, milk, shoes, manicure/pedicure, video game, etc.). Explain how the law of demand affected your purchase. Give specific examples of how the determinants of demand and supply affect this product (T-I-P-E-N and P-R-E-S-T). What happens to the demand curve and the supply curve when any of these determinants change? Give examples of scenarios that would cause a change in demand versus a movement along the same demand curve and supply curve for this product. Discuss the new equilibrium price and quantity that result from these changes. Can you demonstrate some of these changes graphically?
How disparate are returns if you win. As disparity increases => marginal benefit increases. Which of these two explanations is correct.
Suppose price of widgets is $10. How many widgets does each firm produce. How much profit does each firm earn. Is industry in long-run equilibrium? How do you know.
Suppose that, in order to finance a government- sponsored health plan, the government needs to increase spending by 10%. The government plans to finance the higher spending with an increase in taxes. As a consequence of this government policy, the ag..
Elucidate the impact does the dollar appreciation have on the firm's international competitiveness.
mr. banks knows that line maintenance expense varies with company size and he wants to use the latter to predict the
Explain briefly the ethical situation. What are the all the different actions you could have taken. What are the consequences of each of these actions.
Compute the resulting dead weight loss (DWL) inefficiency from the monopolistic optimal outcome.
Due to competition among firms, markets that have more firms usually have lower prices. However a study by two economists in 92 metropolitan markets in the United States found a different result for the pricing of the service of the primary care phys..
If the product price is $105, at its optimal output will the firm realize an economic profit, break even, or incur an economic loss? How much will the profit or loss be? Show all calculations.
we dot know whether the total quantity of Internet ads will increase or decrease. Is the students analysis correct? Illustrate your answer with a demand and supply graph.
Which of these transactions do not get counted in GDP--sale of a used piece of furniture, income of a drug dealer, income of your teenage babysitter, daycare services, services of a doctor, a condo built in 2004 resold today, purchase of a brand new ..
Assume that a nation’s marginal propensity to consume is 0.8, and that its potential GDP exceeds its actual real GDP by $3000 (There is a recessionary gap). By how much should that nations’ government initially change its spending (G) in order to clo..
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