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Question
For each of these situations for part a, b, c, answer what happens to the list below. (increase, decrease, no change) with all other things constant. In addition draw the necessary Demand and Supply graph and show the shifts. Label all points on the graphs clearly. State for each market below what happens to: demand, supply, equilibrium price, equilibrium quantity, Quantity Demanded, Quantity Supplied
1. How will a decrease in supply of Coffee affect the market for Coffee and Tea market? Assume substitute products. You need to show two markets, with two sets of the list.
2. How will an increase in cost of plastic used in making toys affect the market for toys?
3. How will the increase in the future price of silver affect the current market for silver?
Assume the market for jeans is perfectly competitive. For each of the following situations usethe methodology of comparative statics to draw the graph.
The annual rate of interest is the ratio P0/P1,the price of a current consumption claim divided by the price of a consumption claim dated one year in the future
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The firm expects the income of the market to rise by 10%. Calculate the price PV should charge if it wants to maintain sales volume at its existing level
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I Surrender In 2008, getting your hands on the new iPhone meant signing a two-year AT&T contract. Some markets, because of the costs of being a player.
Run regressions for the linear and quadratic models. Report your results in the standard Predicted Y = b + mX format.
Derive the demand curves for GGC's product in each market and derive GGC's marginal revenue (MR) and marginal cost (MC) curves in each market. Show graphically GGC's demand, MR, and MC curves for each market.
Explain An introduction to the company and its industry, analyzing its background, industry, and structure. (For this, you can draw from the work you did for the second Unit 2 assignment.)
Explain why the socially optimal amount of production of product X is: 1) Not zero; 2) Less than the amount a competitive market would produce.
MCD2020 Microeconomics - Explain and further discuss the selected economic ideas. In your explanation, you need to show understanding of the economic ideas
Defines and explains a closed system and provides an example and explains the inner and outer flows of a closed system.
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