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Suppose a new discovery in computer manufacturing has just made computer production cheaper. Also, the popularity and usefulness of computers continues to grow. Use Supply and Demand analysis to predict how these shocks will affect equilibrium price and quantity of computers. Is there enough information to determine if market prices will rise or fall? Why?
An individual purchases a dozen eggs and must take them home. Although making trips home is costless, there is a 50 percent chance that all of the eggs carried on any one trip will be broken during the trip. The individual considers two strategies: (..
Differentiate between the resource market and producer market in a circular flow model. Determine the way that businesses and households both sellers and buyers in this model also find the flows in the circular flow model?
Increases in structural unemployment can result from a recession but are more commonly associated with other changes, such as the development of new products that replace old products.
Work decisions are based upon a comparison of priviate cost and the private benefit. The external or spillover benefit of someone doing additional work is measurable for society as the change in?
Give a brief summary of economic costs. In the short-run, why might a firm still operate even when there is a loss.
assuming that overall taxes are cut by 10 percent across the board. What will this change do to disposable income, consumption, and the multiplier
What is the price elasticity of supply of land in Manhattan? What is the price elasticity of supply for land dedicated to a specific use, such as apartment buildings or office buildings? How do your answers affect the nature of economic rent earned b..
The government is considering increasing the tax on gasoline by $3 per gallon and has asked you to determine the impact on Janet's consumer surplus. Janet spends 5% of her income on gasoline and her utility function is Cobb-Douglas.
what are the gains and losses of international trade? what happens when tariffs are imposed in terms of the importing
1 the demand and supply equations in a market are given as q 30 - 2p and q 10 2p. if the government imposes a tax of
question 1 discuss using examples and academic references the statement that perfect competition gives an optimal
The rate of our imports and exports has nearly quadrupled during past decade alone. Firms today are hiring, investing, buying, selling, increasing capital overseas among other things
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