Reference no: EM131442551
ASSIGNMENT
Part I. News article: "Coca-Cola has developed a soft-drink vending machine that adjusts the price according to the weather. Price rises during warm weather and decreases during cooler weather."
Think of a Coke machine in terms of market economics, that is, as having demand and supply. (You may find it helpful to illustrate for yourself.) Assume the supply curve is vertical to reflect that the machine gets refilled on some frequency, such as weekly. In other words, price does not affect quantity supplied.
a) Economically, what the benefit to consumers of price increasing in hot weather? (Tip: imagine you and another person walked up to a machine and there was only one can left in it.)
b) Which core (basic) economic question is being resolved by price increasing in hot weather in soda machines?
c) The prevailing system of machines having just a fixed price, although not set by government, has what effect on pricing (causes the fixed price to effectively act as a what) during hot weather ?
Note: this section (Part I) is not concerned with effects on the CocaCola company (such as sales, costs, profits, etc.), so do not address these. And, as mentioned above, assume that quantity supplied does not change with price. Also, note that the name, "Coke", is spelled with capital " C" .
Part II. For each of the following items, identify whether it is included or excluded in calculating this year's GDP. In each instance, briefly explain why. (Note: since this course is not covering the "Measures of Income" and "Flow of Income" sections in Chapter 5, do not base your answers on that material.)
(a) An auto mechanic who fixes his own car at home
(b) Cash received from selling a corporate bond (excluding any broker commission, etc.)
(c) Spending by a city government on a waste-treatment plant
(d) The pleasure that people obtain from working at jobs they like
(e) A veteran's payment made to a retired military officer.
|
Analyze what was the economic impact of subprime crisis
: What was the economic impact of Subprime crisis? What was the plan of Alan Greenspan,Chairman,Federal Reserve?Why he proposed it? Do you think the plan led to the Housing Crisis.
|
|
Examine the price elasticity of demand
: You will analyze data on firm sales and in the market overall to identify trends and inform your recommendation for the firm's future actions - Explore the supply and demand conditions for your firm's product.
|
|
Mathematical problems in industry
: Math 7731 - Mathematical Problems in Industry Assignment. We have now proved (1) for the special case of f as described in (b). How do you think we would prove it for any f ∈ H10(a, b)? (Describe in words.)
|
|
Discuss current trends in the economic environment
: Discuss current trends in the economic environment that marketers must be aware of and provide examples of company responses to each trend
|
|
What benefit to consumers of price increasing in hot weather
: ECON 2301- Economically, what the benefit to consumers of price increasing in hot weather? (Tip: imagine you and another person walked up to a machine and there was only one can left in it.)
|
|
Define law of demand
: An analyst observes the following equilibrium price quantity combinations in the market for restaurant meals in a city over a four-year period
|
|
How does the price elasticity of demand for gasoline
: How responsive do you think consumers will be to the price change when these fluctuations occur due to changes in supply? Why? Use the various determinants of elasticity to explain your answer.
|
|
Describe the scale anchors used to score the instrument
: As an organizational consultant for Walden Sports, it may be your responsibility to decide on appropriate instruments to measure various organizational constructs. In this week's Discussion, you used your observations to identify constructs of org..
|
|
What is ease of discharge
: In electrochemical series moving down the table the ease of discharge at cathode increases.why? And what is ease of discharge
|