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Stoll's Pasty Farms has contracted you to do an economic analysis of the regional market for pasties and you have been operating under the assumption that a pasty is a pasty is a pasty - in other words, one pasty is just as good as any other. Recently completed, your study of the regional market for pasties was carefully done and resulted in the following estimates for the annual demand and supply curves: P = 2 + 10Q and P = 110 - 8Q where Q is expressed in thousands of boxes and price is in dollars per pasty box (if you really want to know, a box contains a Yooper dozen of pasties). Given this information, Stoll's Pasty Farms would like you to answer the following questions:
Suppose a freeze in florida wipes out 20% of the orange crop. How will this affect the equilibrium price and quantity of banana? Assume that the orange and banana are substitute to each other.
The nominal GDP in 2000 was $672 billion and $1,690 billion for 2010; the real interest rate was 6.79% in 2000 and 3.71% in 2010; the 2000 deflator was 24 and 51 in 2010. What is the real gain?
When the price of a box of herbal tea bags rises from $0.99 to $1.21, the quantity offered for sale rises from 400,000 to 600,000. What is the price elasticity of supply? 2. When the price of wheat rises from $2.34 to $2.46, some farmers switch cr..
"Unemployment insurance, and other government welfare programs, may have played a significant role in the lingering unemployment in the economy since the Great Recession of 2007-2009." Why would this be the case?
The federal government estimated that the elasticity of demand for cigarettes among teenagers is equal to 2. If they want to reduce smoking by 50% among this group and the price of cigarettes is $6.00 per pack
Sometimes after a really long presentation, people ask me "what's the takeaway?" They're looking for a short summary of the main points. This essay should be the "takeaway" from the CBO's analysis of the Federal budget outlook.
Effects on the exchange rate among the British pound and the Japanese yen.
What is each orchard's labor demand as a function of the daily wage W? What is the market's labor demand? Ectenia has 200 workers who supply their labor inelastically. Solve for the wage W. How many workers does each orchard hire? How much profit ..
Determine which of the following combination of inputs is most closely reflective of decreasing marginal rate of technical substitution?
Large scale wars typically bring a suspension of international trading and financial activities. Exchange rates lose much of their relevance under these conditions, but once the war is over, governments wishing to determine the rate at which to fi..
A student bought a $75 used guitar and agreed to pa for it with a single $85 payment at the end of 6 months Assuming semiannual (every 6 months) compounding, what is the nominal annual interest rate? What is the effective interest rate?
Assume you are looking at data for an economy that uses only two inputs, physical capital and labor. The table shows output for different combinations of labor.
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