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Q1. During the late 1980's wool prices increased considerably due in part to increased demand by China and the former Soviet Union. From 1977 to 1988, the price of wool for the worsted clothing rose from $3.67 to $5.81 per pound. Expecting that wool prices would remain high, wool producers raised a lot more sheep. Did this result in a shift to the right in the supply curve for wool? Why or why not?
Q2. Newspaper and soft drink are priced almost the same around $1 per unit by vending machines. Given the same unit price (value), how come a newspaper vending machine can be opened easily (i.e. take as many as you want) but a Coke vending machine is tough to open (i.e. drop one can at a time)? Please analyze it by marginal analysis for optimization.
Russian farmers, again, have a poor crop. Their government has announced that they will not ban exports. Discuss the impact on domestic and world prices, consumers and producers the effects of the Russian government's decision.
She is now considering raising her prices by 20 percent to offset the increase in her monthly rent.
Assuming sum-of-years digits depreciation, what book value will Model-I have after two years.
Draw a graph of the market for chewing gum. What are the equilibrium price and quantity? Mark the equilibrium price and quantity in the graph.
The European Engine Company (EEC) is a multi-national manufacturer of small gasoline and diesel motors.
Find the mean and standard deviation of team payroll for the 14 American League and the 16 national League teams.
Suppose that a pay equity plan has just been put in place in your organization. The pay equity consulting firm did a job evaluation and assigned points to each of the male-dominated and female-dominated jobs.
Compute the resulting utility if the population were on million higher and one million lower than the optimum.
Watch the video titled Fear the Boom and Bust. Using the tools of macroeconomics, identify the primary difference between the two philosophies.
Find the 90% confidence interval for the compensation of a year when the productivity is 85 and interpret the C.I.
Each station's objective is to maximize its viewing audience, in order to maximize the station advertising revenue.
Idea that a country can simultaneously pursue only two of the three following policies: free international-capital flows, monetary policy for domestic stabilization, and a fixed exchange rate.
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