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Gas prices in Chicago are currently a bit under $3. Just a few years ago, gas prices were over $4. People respond to incentives. How do you think lower gas prices affect:
(a) Gasoline consumption?
(b) Miles traveled by car?
(c) Public transportation usage?
Explain your answers.
The market for a box of POG’s is defined by Qd=80-P and Qs=P. Calculate perfectly competitive equilibrium, consumer surplus, and producer surplus. Calculate quantity supplied, quantity demanded, and producer surplus, consumer surplus, and deadweight ..
Economists who support minimum-wage legislation are likely to believe that the. Which of the following statements illustrates diminishing marginal utility? Adverse selection--buyers of life insurance will likely have higher than the average death rat..
Find the income elasticity for good one. What does this tell us about the relationship between income and the amount of good 1 purchased? Under what circumstances does this seem a plausible model of behavior?
Describe a situation that would call for applying one or more of any (dynamic economic model/legit model/random walk model/spurious regression/co integrated time series/tests of stationary). Explain your rationale for applying the model you chose.
q. 1 the contracting and organizations research institute at the university of missouri maintain lots of interesting
The demand functions faced by a firm in two different markets are: Q1 = 600 – 10 p1 and Q2 = 800 – 10 p2. The firm has constant marginal costs of production equal to $20. Find the optimal prices and output if the firm price discriminate in the third ..
How does imposing rent controls affect the number of housing units available to low-income families? Illustrate your response using graphs.
Which of the following is critical for a firm adopting a long-term cost-reduction strategy?
What is the expected profit from a new hire chosen at random from the applicant pool? Limit your analysis assuming one year of employment.
A salesperson can put in regular effort (resulting in a 40% chance of sale) or high effort (60% chance of sale). If high effort costs the salesperson $20 more than regular effort, how large of a per-sale bonus is required to encourage high effort? Th..
To assess the impact of those mergers,on industry on consumers and on society as a whole.
How does this policy involve the supply and demand for loan able funds. What occurs to the equilibrium interest rate.
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