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Demand Curves and Shifts
The demand for new motor homes in the United States is highly cyclical and sensitive to diesel fuel prices and interest rates. Given these characteristics, describe the effect of each of the following on the quantity demanded or the demand for new motor homes. Indicate whether the effect of each of the following is an upward or downward movement along a given demand curve or instead involves an outward or inward shift in the relevant demand curve for new motor homes. Why?
- decrease in the average price of new motor homes?
- increased fear of traveling by air because of terrorist threats?
- fall in the price of diesel fuel (used in many motor homes) because of a peaceful resolution of the war in Iraq?
- significant rise in advertising by cruise ship operators?
Illustrate what affect might our concern for the baby boomers reaching retirement age, and the smallest number.
Compute the value of the price index for GDP for 2006 using 2005 as the base year. By what percent did prices increase.
The organization have considered situations of just shifting the spending power among the competing sectors. Does anyone have any thoughts.
Compute the elasticity of demand in going from 2 unit to 3 units. Is the demand elastic or inelastic in this range.
Explain how can these limits to reimbursement be viewed as the exercise of monopsony power.
Dividends $1.12 and the multiple is 15 show mathematically. Explain how long Gina has to hold the stock to justify its multiple.
The demand and supply curves for gasoline (in billions per year) are given below. Using the equations, find the initial equilibrium price and the quantity in the market for gasoline.
The Heckscher-Ohlin model assumes that tastes are the same in Home and Foreign. Suppose now that tastes are different in Home and Foreign.
Illustrate what value for r is optimal for the seller, and what then is the seller's expected profit.
Discuss the determinants of varying levels of income, the factors which determine a person's wages and if these qualifications always hold true.
Your consulting company has been hired to analyze the results and make recommendations.
Illustrate graphically the impact in the short run and the long run of a Federal Reserve decision to increase open-market purchases.
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