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How will each of the following changes in demand and/or supply affect equilibrium price and equilibrium quantity in a competitive market; that is, do price and quantity rise, fall, or remain unchanged, or are the answers uncertain because they depend on the magnitudes of the shifts? Draw supply and demand to verify your answers for each scenario.
a. An increase in the number of firms causing a drop in the birthrate.
b. Advancements in the Android RAM and consumers are more interested in purchasing this.
c. Expecting the price of a product to increase.
Assume that there are 1,000 identical consumers in the market for good X, each with the same income and the same preferences. When the price of X is $50, the typical consumer 4 is willing and able to purchase 20 units of X. Show the effect of an incr..
Sales personnel, whether selling life insurance automobiles or pharmaceutical typically get paid on commission instead of a straight hourly wage. How does paying a commission help solve the principal agent problem between the owners of a business and..
Suppose that everybody believes that all the used cars are for sale. What would used cars sell for? Would every used car owner be willing to sell at this price?
The National Collegiate Athletic Association (NCAA) does not allow its members to play against schools that the NCAA does not certify
P(B)=0.4.If A and B are disjoint, what is the probability that A or B occurs?P(A?B)=
A monopolist faces demand given through: P=100-4Q and has marginal costs given through: MC=10+2Q Create the demand, marginal revenue and marginal cost curves. Compute and demonstrate how much this firm will sell and what it will charge.
The long-run and short-run aggregate supply curves reflect fundamental differences between long-run and short-run macroeconomic analysis. Graphically illustrate the long-run and short-run aggregate supply curves. Be sure to label the axes.
Lab Report: Explain how the XenDesktop works as a virtual machine. What is a virtual machine? How does this affect your access to files?
Suppose the MWTP in periods 1 (now) and 2 (one year from now) is given by P = 8-0.4q. Marginal extraction cost = $2. r = 15%. The available supply is 20 units. Calculate the allocation of outputs across the two periods that maximizes the present valu..
Suppose the Fed announced that they planned to keep short run interest rates low for a period of two years. This year, the 1 year USTS zero coupon bond interest rate is i = 0.0025 and next year the interest rate on a 1 year zero Coupon bond is expect..
What are the differences between the production of PCs and the production of Amazon Kindle - what should the US government do to foster US competitiveness?
A random sample of 248 promotion decisions over the past years yields the following information:
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