How oil price shock of 1980 sent gasoline prices higher

Assignment Help Econometrics
Reference no: EM13219993

The oil price shock of 1980 sent gasoline prices sharply higher. Coal prices moved in sympathy with oil prices, with the result that coal companies earned pure economic profits. Since coal is a homogeneous good and the market is competitive, what happened in this market.

Reference no: EM13219993

Questions Cloud

Develop a program that includes a function : Develop a program that includes a function which has been created by you. This function should receive a single string as a parameter and decide if the string is indeed a palindrome or not a palindrome.
How to identify the part of the business cycle : Identify the part of the business cycle that is characterized by:  The economy is at full employment.  The growth rate of aggregate demand exceeds the growth rate of aggregate supply. Recession. Recovery and non-inflationary growth.
Explain the differences between server-side and client : Explain the differences between server-side and client - side scripting languages. Please provide at least 3 advantages and disadvantages of each. Please cite your sources if needed.
Describe growth objectives for organization : Discuss the company's corporate strategy and explain what business the organization is in or wants and describe your growth objectives for this organization.
How oil price shock of 1980 sent gasoline prices higher : The oil price shock of 1980 sent gasoline prices sharply higher. Coal prices moved in sympathy with oil prices, with the result that coal companies earned pure economic profits. Since coal is a homogeneous good and the market is competitive.
Discuss how emergency preparedness reduces risk : Discuss how emergency preparedness reduces risk. What best practices would you recommend related to emergency preparedness and response in corrections and Do you believe that the management of crisis or emergency situations should be regulated by ..
Calculate output-price and profit under monopoly conditions : A local business in a small college town has a major portion of their business to college bookstore. On the side they also provide services to other local businesses. The local demand is Q=200-5P. The average and marginal cost is $8.
What is the density of the solution : Express the concentration of a 0.0760 M aqueous solution of fluroide, F-, in mass percentage and in parts per billion
What about firm would mitigate the concerns : Considering the intense work place at BuyCostumes.com during the two months before Halloween and the culture of "urgency," what would be the largest concern for mental and emotional health?

Reviews

Write a Review

Econometrics Questions & Answers

  Determine does the bank now hold excess reserves

Suppose a depositor comes to the bank and withdraws $200 in cash. Show the banks new balance sheet assuming the bank obtains the cash by drawing down its reserves. Does the bank now hold excess reserves Is it meeting the required reserve ratio

  What is the monthly payment for the plan

A loan is 600,000 at (1) 7% /yr/monthly over 30 years or (2) 6.625 compounded monthly over 15 years. There are no charges and prepayment can be done without penalty.What is the monthly payment for plan (1)

  Describe which policy would a supply-sider prefer

Which policy would a supply-sider prefer, an across-the-board tax reduction in income tax rates or a package of tax-relief measures that would give every household a $200 tax rebate and allow them to deduct the interest they pay on credit card pur..

  What is the rate of inflation between the two years

velocity 8 8 Real GDP12,00012,000 a,find the price level for 2012 and 2013 What is the rate of inflation between the two years b,What is the rate of inflation between the two years if the money supply in 2013 is 1,100 and output is 2013 is 12,600

  Do the opportunity costs of borrowing differ

Lenders perceive that you are risky, so you must pay 12 percent annual interest to borrow from one of them. You only receive 6 percent on funds you have deposited in the bank. Do the opportunity costs of borrowing and using your own funds differ.

  How the law of demand may be violated

In 1951, Coke used to cost $0.37 for a pack of 6, an average house was worth about $16000, and a car was $1400 to 2200. All these goods are much more expensive now, and yet we buy and consume more of these things today than we did in 1951. Does th..

  What is the equilibrium price and quantity for the industry

The widget industry is perfectly competitive. The industry demand and supply functions for widgets are given below. Qd = 424 - 40P Qs = 40 + 8Pa. What is the equilibrium price and quantity for the industry.

  What types of fuel that can be used to ignite the boiler

A steam boiler is required as part of the design of a new plant. The types of fuel that can be used to ignite the boiler are natural gas, fuel oil, and coal. The cost of installation including all required controls is $40,000 for natural gas.

  Which security to purchase relate to degree of risk aversion

Suppose that a security costs $3,000 today and pays off some amount b in one year. Suppose that b is uncertain according to the following table of probabilities: b: $3,000 $3,300 $3,600 $3,900 $4,200 Probability: 0.1 0.2 0.3 0.2 0.2

  What price does each firm charge

Consider a monopolistically competitive market with N firms. Each firm's business opportunities are described by the following equations: Demand: Q=100/N-P Marginal Revenue: MR=100/N-2Q Total cost: TC=50+Q(squared) Marginal Cost: MC=2Q

  Solve the equations for the equilibrium values of c and i

Assume that the following equations characterize a large open economy: (1) Y = 5,000 (2) Y = C + I + G + NX (3) C = 1/2(Y - T) (4) I = 2,000 - 100r (5) NX = 500 - 500? (6) CF = -100r (7) CF = NX (8) G = 1,500 (9) T = 1,000

  What is the opportunity cost of moving from producing

Maximum possible combinations of food and clothing that can be produced in a given period of time: Units of food (millions) Units of clothing (millions)Draw a PPF for this economy. b. What is the opportunity cost of moving from producing 4 mi..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd