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Price is determined by equality of demand and supply. The grocery stores charge same price for whole milk, 2% butter fat milk,1% butter fat milk and 0% butterfat milk. The demand for fat free (0%BF) milk is less than supply causing surplus of this type of milk. Why do grocery stores still charge the same price as other types of milk?
What are the differences in the available products? What are the differences in the quality of those products? Considering this, in which of those years would you rather live? Why?
What determines whether or not resources is scarce? Why is the concept of scarcity important to the definition of economics?
What does Friedman believe about expansionary monetary policy? Do you think Keynesian economists would agree?.
What is the maximum amount that the money supply can increase when $1,000 cash is injected into a banking system with a 20-percent reserve requirement? Give two reasons why this maximum may not be reached.
"Anjali and Sanu are married, and Sanu is the breadwinner. Anjali provides 4 non-market hours of service daily, and her productivity at home is $15. Sanu's earnings are $20/hour, and his productivity at home is $10/hour. Draw his daily budget constra..
Compare the automotive manufacturing industry today to the automotive manufacturing industry of the 1950’s. Applying the economics of price and output, what is the difference between the industry of today and that of the 1950’s.
Your hospital is considering opening a satellite urgent care center about five miles from your main campus. You have been charged with gathering demographic information that might affect the demand for the center's services. What data are likely t..
How would privatization, deregulation and the removal of barriers to foreign direct investment affect the efficiency of business, new business formation, and the rate of economic growth in India during the post-1990 time period?
Calculate the average veriable cost, average fixed cost and average total cost at each output level.
Suppose you can hire your mechanic for up to six hours. The total benefit and total cost functions are B(H)= 400√H and C(H) = 100H. The corresponding formulas for marginal benefit and marginal cost are MB= 200/√H and MC(H) = 100. What is your bes..
Elucidate factors would you consider before investing in the emerging stock market of a developing country.
Suppose that the exchange rate between the Russian ruble and the U.S. dollar is currently $0.03 to the ruble. The one year forward rate for the ruble is $0.025 dollars to the ruble. If Russian inflation is 20% what is the approximate U.S. inflation r..
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