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1. What is the difference between a movement along and shift of the demand curve? Let us consider the demand for DVDs. What will cause a movement along the demand curve for DVDs and what will cause the demand curve for DVDs to shift? How will the curve shift? To the right or the left? Why?
2. Ice cream can be a normal good but for some people vanilla ice cream can be an inferior good. Discuss how that is possible. Give an example of a good that you consider normal and one that you consider inferior.
What is the optimal production quantity for the card - Los Angeles, Santa Monica, Hollywood, and Pasadena. Based on past data, the number of customers from each of the four regions is normally distributed with mean 4,700 and standard deviation 700.
Edison Electric Company's president has been arguing that residential electric rates need to be raised relative to industrial rates.
A firm pays a wage of $40 per hour to 25 unskilled workers, $60 to semi-skilled workers, and $80 to 10 skilled workers. Find the weighted average wage paid by the firm.
Why might variations in the dollar's value in terms of other currencies cause the trade deficit to move independently from the changes in the government budget deficit.
Nash equilibrium is:
describe the amount of output produced by Stone Company. How much profit will Stone Company make when it acts as a monopolist.
An economy produces 2 goods soda a beer. Fully explain why the marginal cost function in the beer industry derives from the marginal benefits of the soda that is given up when beer is produced.
Sandy is planning her consumption over five periods during which she expects her income to be 4, 10, 16, 12 and 8. What is Sandy's permanent income? What is Sandy's marginal propensity to consume out of a temporary increase that boosts first period i..
The methodology of combining forecasts is best described as
Using a spreadsheet program, chart the book value of a $14 000 asset over a seven-year life using declining-balance depreciation (d = 0.2). On the same chart, show the book value of the S14 000 asset using straight-line depreciation with a scrap valu..
According to Banerjee and Duflo, poor people make decisions differently than do those who are not poor. In their view, this is the fundamental obstacle to economic development in poor countries. Do you agree or disagree? Explain your answer.
Explain why economists teach that free competitive markets (with secure property rights, no externalities, and so on) in equilibrium are highly likely to be very good social mechanisms for societies to utilize in order to organize the production and ..
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