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Explain what happens to supply, price, and quantity when the following condition occur: a) A new technology is developed to pick peaches b) The government allows more furniture input from China. c) Interest rates are lowered to help spur the economy. d) The cost of rubber which is used in the manufacturing of tires increases e) The government imposes a tax in imports of foreign cars.
What is the externality associated with an individual driving on a congested highway? How do tolls help alleviate this externality? How should tools be set? (Hint: would you always want the toll to be the same all day?) The steel industry pollutes th..
Explain how "Black markets" impact economic actives: please explain in detail and use a supply and demand graph for your examples
Prices perform a rationing function by A. eliminating scarcity in the market. B. making sure that buyers do not have to wait for goods. C. allocating goods to the buyers who are willing and able to pay the highest price. D. allowing? high-demand buye..
A tractor for over-the-road hauling is purchased for $90,000. It is expected to be of use to the company for 6 years, after which it will be salvaged for $4,000. Calculate the depreciation deduction and the unrecovered investment during each year of ..
q1. based on illustrate we know about the effects of mandatory seat belt laws which of the following groups would be
The well known nationally syndicated columnist David Broder reported the recent findings of two academic political scientists. These scholars found that voters are quite turned off by “negative campaigns” of politicians. Many people went as far as no..
Let's assume that you own a fast food restaurant and you are faced with many customers each day eating in the restaurant without any tables.
Based on Figure 1, at equilibrium with free international trade in the market for calculators the price per calculator in Mexico is the world price P = $3.50. When the price is P=$3.50 what is the quantity supplied by Mexician producers, Qs and what ..
What is the profit-maximizing p in the case that Godzilla and Macrosoft merge and suppose that Godzilla chooses its price first, and that Macrosoft only picks its price after observing Godzilla's price. Is the equilibrium price of the composite go..
Mighty-lite inc., a manufacturer of plastic tables for institutional use is considering a capital spending program involving annual expenditures of 100,000 for each of the next five years.
On October 19, 1987, the Dow Jones industrial average dropped about 500 points or a little more than 23%. What effect should a decline in stock values of this magnitude have had on aggregate demand according to the life-cycle theory of consumption?
Forward premiums and discounts imply that there is risk in foreign exchange transactions. Explain the three types of FX risk? How can foreign exchange rate risk be fully covered or hedged?
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