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A store lowers the price of speakers. Sales of speakers increase. Does this represent an increase in demand or an increase in quantity demanded? Does the demand curve shift?
Consider the market for minivans is at equilibrium. Determine, using the supply and demand model, how the following events might affect the equilibrium price and quantity for minivans. Explain why fully. Consider each separately.
Your brother has decided to purchase a new automobile with a hybrid-fueled engine and a six-speed transmission. After the trade-in of his present car, the purchase price of the new automobile is $30,000. This balance can be financed by the auto deale..
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..
Which theory of regulation suggests that regulatory outcomes reflect the desire of regulatory agencies to increase their own budgets and power more than they reflect any interests of business or the public?
International trade can be one of the more contentious political topics in our country. Examples from importing goods from other countries to outsourcing labor offshore leads to major political debate on both sides of the aisle. In what other ways ca..
It is likely that a pro trade production growth effect will lead to an expansion of trade since the presence of inferior goods is relatively rare. Explain.
Donna buys goods X and Y. She can just afford the bundle X=6 and Y=11. She can also afford X=12 and Y=8.Each of these bundles exhausts her income. Draw Donna's budget line. What is the ratio of the price of x to the price of y? If Amy spent her entir..
Discuss how Macy's department store could improve its net profit position? Discuss the specific factors in cost of goods sold that would improve the gross margin position of the department store in sales. What other programs besides JDA planning are ..
Ben bakes bread and Shawna knits sweaters. Ben and Shawna both like to eat bread and wear sweaters. In which of the following cases is it impossible for both Ben and Shawna to benefit from trade.
We can use the Cournot model to derive an equilibrum industry structure. For this purpose, we will define an equilibrum as that structure in which no firm has an incentive to leave or enter the industry. Find the long-run equilibrum number of firms i..
A change in input prices shifts the isoquant map. Convex isoquants mean that the marginal rate of technical substitution decreases as the firm substitutes labor for capital. A change in cost shifts the isocost curve.
Shellys preferences for consumption and leisure can be expressed as U(C, L) = (C − 200)(L − 80) (1) This utility function implies that Shellys marginal utility of leisure is C − 200 and her marginal utility of consumption is L − 80. Write down the bu..
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