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Indicate whether each of the following statements describes an increase in demand, decrease in demand, change in quantity demanded, increase in supply, decrease in supply, or change in quantity supplied in the given market.
a. Store-brand soup prices are cut, reducing sales of Campbell’s soup. Market: Campbell’s soup.
b. Coffee bean prices hit an 18-month low following a bountiful harvest. Market: coffee beans.
c. A summer heat wave leads to higher prices for bottled water. Market: bottled water.
d. Holiday clothing discounts boost clothing sales. Market: clothing.
e. Apple introduces a tinier and more powerful iPod model. Market: older iPod models.
Elle's preferences over apples (A) and bananas (B) are represented by the Cobb-Douglas utility function; u(A; B) = AB. Write down the optimization problem. What is the objective function? What are the choice variables? What is the constraint? What a..
Explain which of the two classmates would you prefer as a partner. Would he also want you as a partner.
Select a country and research the impact of trade on jobs in that country. Has international trade lead to an increase in the unemployment rate in the country? Which export industries have created jobs? Which import industries have lost jobs? Need ci..
Suppose Uncle Nacho sells shares of Time Warner stock for $20,000 and puts the proceeds from the sale into his money market mutual fund account. What happens to the value of M1 and to M2?
Speculate about why people in higher income groups vote for reasons that are borne out of a sense of duty rather than from economic interests.
A friend tells you that you should never be a patient in a teaching hospital because the death rate among patients in teaching hospitals is higher than in other hospitals. Interpret the meaning of the regression coefficient on the explanatory variabl..
A bond with 20 years remaining has a face value of $1000 and a coupon rate of 15%. Assume that the bond payments are annual and the coupon was just paid.(a) What is the yearly coupon payment?(b) What is the price of the bond if it has a 6% yield to m..
The scholarship is to provide $5,000 the first year increasing by $500 each year thereafter to a maximum of $10,000 per year. On the assumption that the scholarship will start at the end of the first year and continue forever, what endowment must ..
What of GDP growth over the past two years: include an assessment of the overall trend line of growth for the previous three years, and government estimates of growth over the next year?
Outward Shift in the demand for capital occurs in an economic boom when increased construction of plants, buildings and other capital-intensive business activities requires huge outlays of investment. In this scenario, interest rates tend to rise alo..
In a typical day the store sells some of each type of cola, which suggests that Major League Baseball has adopted FOA because it fears that regular binding arbitration is addictive.
can increase the natural rate of unemployment. Is this something that policymakers should be concerned with? Explain.
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