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Recreational use of marijuana has been declared legal in Oregon. How might this information affect the market for marijuana in Oregon? Your answer should have two parts--first state which curve shifts (either demand or supply) and in what direction (increase or decrease), and second explain which of the 5 demand or supply shifters is responsible for this shift. There is more than one correct answer to this question so feel free to focus on just one possibility.
Suppose the employees of Starbucks in China are paid 8 yuan per hour and a cup of coffee is priced at 8 Yuan. If Starbucks is maximising its profit, What is the value of marginal product of labour (VMPL) per hour of the last worker employed by Starbu..
Assume there are N firms A1 , . . ., AN serving a market with demand given by D(p). Assume that these firms compete for market share via quantity competition. Finally, let cAi (Q) denote the cost function for firm Ai. Describe this environment as a g..
You’ve just opened a margin account with $15,000 at your local brokerage firm. You instruct your broker to purchase 800 shares of Landon Golf stock, which currently sells for $77 per share. Suppose the call money rate is 6.5 percent and your broker c..
After World War II most Western countries moved away from free markets and constructed ‘mixed economies’ combining nationalization, state planning, and Keynesian demand management. Why were policymakers so keen to abandon markets and adopt state plan..
The government of a small open economy wishes to promote trade policies that will result in currency appreciation (increasing the real exchange rate). Would protectionist policies (higher tariffs and more quotas) or freer trade policies (tariff reduc..
The World of Videos operates a retail store that rents movie videos. For each of the last 10 years, World of Videos has consistently earned profits exceeding $30,000 per year. The store is located on prime real estate in a college town. World of Vide..
What would be ultimate impact on the equilibrium price also quantity in the market for oak tables if the price of maple tables.
discuss several ways in which greater educational opportunities for young women could lead to faster economic growth in these countries.
q1. evaluate how the following situations will affect the demand curve for ipods. believing that it has significant
Suppose that labor costs w=$100 per day and that at the current level of employment the marginal product of labor is 20. What does marginal cost equal? Show/explain. Interpret the value you obtained for marginal cost. If, at the current employment le..
Life has become yet more complicated. Government spending works with a distributed lag. Now when $1 billion is spent today, GDP increases by $1 billion this period and $1.5 billion next period.
The congestion fee was raised to £8 in July 2005. Illustrate the new equilibrium point on your graph also assuming new charge is now optimally set.
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