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Use a supply and demand analysis to predict what will happen to the equilibrium price and quantity of cherries if cherries are discovered to help prevent colds AND a fungus kills 10 percent of existing cherry trees. You must provide clearly labelled supply and demand diagrams. You must also provide well-written economics arguments supporting your diagrams.
Between Q1, 2014 and Q1, 2015 measured Output in the non- farm business sector increased by 3.2%. During this time period the unemployment rate fell from 6.6% to 5.5% and total hours worked in the nonfarm business sector increased by 2.8%. What was t..
Economic theory would suggest that the profitability of an industry would be
In a particular industry, labor supply is ES=20+w and labor demand is ED=60−4w, where E is the employment level and w is the hourly wage. What are the equilibrium wage and employment if the labor market is competitive? What is the unemployment rate?
Explain and illustrate graphically the effect of the following on the monetary base and the level of reserves. The Fed lends the Bank of America additional $20 million but depositors withdraw $5million. Central bank purchases $30 million of governmen..
Textbooks for college courses in economics tend to be very expensive even though the material in the books is not particularly unique. In fact almost all textbooks contain the same theories and concepts and differ only in applications, examples, and ..
Mr. and Mrs. Cally are in the process of buying a home for $240,000 and are considering the following home mortgage financing options: What is the expected home's value in 5 years? What is the outstanding loan balance in 5 years for option 1: ? for o..
Use a supply-demand graph to demonstrate how the quantity and price of medical services are expected to be affected if we went from a world without insurance to a world where the government covered 90% of all medical costs.
A local dentist read an article published by the American Dental Association estimating that the elasticity of demand for the representative dentist's services is -2.5. How much should the dentist mark up her price over marginal cost?
Due to a technical breakthrough, the fixed costs for a firm drop by 25%. Prior to this breakthrough, fixed costs were $100,000 and unit contribution margin was and remains at $5.00. The new amount of break-even units will be?
Substantive responses use theory, research, and experience or examples to support ideas and further the class knowledge on the discussion topic.
You are the chief economist of the County Regulatory Commission. The local cable TV monopoly franchise is regulated. The consulting firm provides the long run total cost and demand function estimates for the franchise: If the franchise were not regul..
Explain how does the bank's Find outing relate to economist's traditional focus on Illustrate what people do, rather than Illustrate what they say they will do.
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