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Suppose the prospective buyers of houses become more optimistic about the future prices of houses while at the same time existing owners of houses become more pessimistic about the future prices of housing. Explain what you think will happen to the current prices of houses. Drawing a graph may be helpful in answering the question.
The firm ALFA is known around the world for its high-quality watches, and they sell for a unit price of $9,000. However, ALFA are seeing the emergence of Asian ALFA-copy-products in their market as an increasing problem. What will the consumers’ will..
Demand and supply analysis, what is the impact on price and quantity in the market for live chickens and explain what the calculated elasticity value means.
If there was an economic drop of 5%, how a short and long run firm supply and demand would be affected and what is the decision a CEO must take. In your response, please consider the PPF curve, opportunity cost, perfect competition, and social welfar..
Suppose that during one period, the velocity of money (V) is constant and during another period, it undergoes large fluctuations. During which period will the quantity theory of money be more useful in explaining changes in the inflation rate? Briefl..
As of January, 2014, the U.S. now has the first woman Chairman of the Federal Reserve. Janet Yellen is probably going to continue the Federal Reserve’s current policies. Explain how these monetary concerns will affect a small business where you are c..
If, in the short run, a perfectly competitive firm is producing at a point where total cost is greater than total revenue, then the firm should.
How has the news media evolved from the nation’s founding to what it is today? Discuss the various functions the news media has in American society. How well do you feel the media carries out these functions?
Demand Shocks – As we’ll continue to discuss in class, a recession may reflect declines in aggregate demand, aggregate supply, or both. Are swings in consumer sentiment characteristic of recessions? Plot a measure of sentiment (FRED code: UMCSENT) an..
The amount of toothpaste in a tube is normally distributed with a mean of 6.5 ounces and an s.d. of 0.8 ounces. The cost of producing each tube is 50 cents. If in a quality control examination a tube is found to weigh less than 6 ounces, it is to be ..
A company that produces toys is considering backward integration into production of a certain type of oil, an important component in making the rubber-like material required for the toys. This oil is traded in world commodity markets and its price fl..
Which of the following are consistent with the efficient market hypothesis? You should spend several hours a day studying the business section of your local newspaper to determine which stocks to add to your investment portfolio.
q.1. real wages and productivity-are workers paychecks keeping up? over the long run traditionally real wages grow at
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