Determine the direction of change in equilibrium quantity

Assignment Help Business Economics

Reference no: EM133488690

Case Study: "The cost of one modern heavy bomber is this: a modern brick school in more than 30 cities. It is two electric power plants, each serving a town of 60,000 population. It is two fine, fully equipped hospitals. It is some 50 miles of concrete highway. We pay for a single fighter plane with a half million bushels of wheat. We pay for a single destroyer with new homes that could have housed more than 8,000 people. This, I repeat, is the best way of life to be found on the road the world has been taking. This is not a way of life at all, in any true sense. Under the cloud of threatening war, it is humanity hanging from a cross of iron."

Question: Which economic concept you have studied in chapters 1 and 2, best describes the way the president addresses the nation about the use of limited resources? According to economics, why is presenting choices in this way proper?

Read Chapters 1 and 2 well before you respond to this DB question.

[Resources: Read chapter 2 of your textbook. The supplementary economics textbooks on Canvas can also help you to form your response. Moreover, "How do People Make Decisions" pdf document in Week 1 Module is taken from your textbook. Review it.]

Question Set B

Suppose you're listening to this conversation.

Reports indicate that many carmakers are investing in new technology to expand electric and hybrid car production. At the same time, as awareness about global warming increases, many car buyers are opting for electric and hybrid cars.

Jim: "The supply of hybrid cars and the demand for hybrid cars will both increase. I'm sure of it. I'm also sure the price of hybrids will go down."

Kathie: "I agree with the first part of your statement, but I'm not sure about the price. In fact, I'm pretty sure that hybrid prices will rise."

Question: Ceteris paribus, can we determine the direction of change in equilibrium quantity? Of equilibrium price? Explain briefly.

Reference no: EM133488690

Questions Cloud

Why are they necessary and how might they be achieved : What are two examples of these forms of reconciliation, why are they necessary and how might they be achieved?

Write these recursion routines : Write these recursion routines. Your solution should include the Main program that calls all 3 recursion routines and the 3 recursion routines.

What positives and negatives regarding color blind casting : Nontraditional Casting means in all its forms? What the positives and negatives regarding Color Blind Casting in all its forms?

Which model would you follow and why : The book outlines four different approaches to directing; among these are the director. If you were to direct a play, which model would you follow and why?

Determine the direction of change in equilibrium quantity : Which economic concept you have studied in chapters 1 and 2, best describes the way the president addresses the nation about the use of limited resources?

How does the poem reflect a black nationalist ideology : What is the most intriguing or interesting line from the poem? How does this poem reflect a Black Nationalist ideology?

Identify two current job postings for the career path : Identify two current job postings for the career path you are interested in. Briefly describe the company / job in your own words. Cite the source as well.

How to modify the teaching method to accommodate the learner : How to modify the teaching methods to accommodate the learner with a disability. How to adapt the evaluation of the performance of the learner with a disability

Determine importance of collaborative emergency management : Determine the importance of Collaborative Emergency Management for effective management of hazards and disasters.

User Account

All Pages