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Supply and Demand - Rochester Ice Storm
In 1991, Rochester, New York, had a serious ice storm. Electric power was out in houses for days. The demand for power generators increased dramatically. Yet the local merchants did not increase their prices, even though they could have sold the units for substantially higher prices. Why do you think that the merchants adopted this policy?
In 1991, Brazil and Columbia united to form a coffee cartel and reduce coffee output. Suppose total costs for the cartel are: TC = 12 + 5Q + Q 2
What are the firm's fixed costs? What is the firm's marginal cost? Now suppose other firms in the market sell the product at a price of $10.
Illustrate what did classical economists assume about the flexibility. What disagreements did Keynes have with classical economists.
Suppose the company wants to set its price equal to full cost plus 30 percent. To determine cost, the company must estimate the number of units it will produce and sell in a year.
What kind of shocks could have caused this change to the money demand function? Determine the new interest rate and equilibrium level of output.
Find out an article which is related to health economics from health journal. Some possible sources include Health Affairs
Utilizing the expectations hypothesis and the Taylor rule provide an interpretation of this comment in the article.
Find out the equilibrium market price. Find out the profits of the leader and the follower
If the elasticity of US exports with respect to the real exchange rate is very low, will this increase in private saving have a large or small effect on the U.S. real exchange rate
A rise in corporate income taxes increases the investment in physical capital for any given interest rate.
In the text we mentioned how Levi Strauss price discriminates between the European and American markets. This question is designed to help you analyze this situation.
A firm with costs C(Q) = 1,000 + 60Q + 0.1Q2 is able to price-discriminate-What would happen if it were forced to charge all its customers the same price?
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