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In the following policy scenarios, explain how the policy described might cause a shift of either the supply and/or the demand curve in a particular market and what effect this would have on the price and/or the quantity in that market. Use a graph to illustrate your answer. Restrict your answers to an analysis of markets in the short-run and assume 'average' looking supply and demand curves in all cases. Write your answer and draw your graph in the space provided.
a. As part of Oregon's marijuana legalization process, the state has been slow to certify a sufficient number of labs that can verify the purity and safety of legal cannabis products. This limits the number of producers whose products can be legally sold. What is the impact on the market for legal cannabis products?
Does the law of diminishing marginal returns apply to this firm's production process. If so, explain why and find the quantity of labor at which diminishing marginal returns.
Consider the following demand and supply equations for cell-phones in the domestic country: Supply: Qs = − 60 2 + 3 2 P Demand: Qd = 300 2 − 3 2 P where the price is measure in $/cell-phone and the quantity is measure in thousands of cell-phones. 1. ..
The rate of return on an investment in medical education
Technology transfer in the Solow model : One explanation for China's rapid economic growth during the past several decades is its expansion of policies that encourage "technology transfer." By this, we mean policies -such as opening up to internation..
a. Keep the equipment in use, because it cost $20,000 and simply discarding it would greatly reduce the return on that particular investment b. Write off the equipment as a sunk cost and allow for outsourcing since it is cheaper c. Only consider ou..
It is possible for a company with positive retained earnings to be unable to pay cash dividend since they may not have the cash supply.
1. What is the maximum range of bridged wireless connections? 2. How does TKIP ensure that encrypted data has not been tampered with?
Explain why the long run AS curve is vertical Think about - how AD/AS curves shift to set long term equilibrium?
How do you present in professional written form the answer to economic questions without utilizing equations and symbols? Feedback from my professor states, "this is a course in economics. Approach every assessment from the point of view of an econom..
Developing countries complain that the current international trade practice doesn’t reward the developing countries due to the worsening terms of trade of primary products that are exported mainly from developing to developed countries. What are the ..
Show the effect of a small increase in the interest rate on the intertemporal budget constraint. Assuming standard preferences for current and future consumption (as shown in Figure 11.4), what will be the effect of the increase in r on the savings r..
Suppose the dollar exchange rates of the euro and the yen are equally variable. Which currency, the euro or the yen, would you consider riskier.
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