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California is a large producer of strawberries. Oh No! There is a killer frost that kills half of the crop! (A)How has this affected supply or demand of strawberries? (B)What has happened to the price of strawberries? Please justify your answer by graphing the change in either supply or demand, as well as the change in price.
Rolston Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $26,300, and the company expects to sell 1,480 per year. The company currently sells 1,980 units of its existing model per year..
If the demand for housing falls, reducing planned investment by $75 billion, what is the effect on national income and output (GDP) (the consumption function is c = 50 + 0.7 (yd))
"Because agricultural demand is inelastic, a technological advance that lowers costs will reduce total revenues. Thus, farmers have no incentive to adopt such new technology." True or false? Explain
Illustrate which offers the higher expected return. If you expect the rate of inflation to be 3% over the next year, which is the better investment.
What are two ways that economists have tried to quantify the value of non-market work so that it can be added to GDP to produce a more inclusive measure of economic activity?
Suppose that there preventative consumer’s preferences change, in that his or her marginal rate of substitution of leisure for consumption in- creases for any quantities of consumption and leisure. Explain what this change in preferences means in mor..
The operating instruction issued to the European Central Bank is to use monetary policy to focus entirely on targeting the inflation rate. If it follows those rules what would it’s Taylor rule equation look like? Be specific.
Semiconductor manufacturing involves taking a flat disc of silicon, called a wafer, and depositing many layers of material on top of it. Each layer has a pattern on it that, upon completion, defines the electrical circuits of the finished microproces..
The Environment Ministry in Japan proposed new carbon tax in order to meet Japan obligations to decrease carbon dioxide emissions under Kyoto Treaty.
State and Local Governments in this country use sales taxes as means of generating revenue. In other countries, a value added tax (VAT) is used to generate Government revenue. Please explain the difference. In your opinion, which tax system is most e..
Under the responsibility scheme proposed by the Hong Kong government, households will be charged for solid waste disposal. Is this charge justifiable from an economics point of view? Explain your answer with a diagram ( IT is Microeconomic question)
For a perfectly competitive firm,
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