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An unusually cold winter will mean consumers will demand more wool sweaters. What will happen to the demand curve? What will happen to the supply curve? What will happen to the equilibrium price? What will happen to the quantity sold?
Steve owns a bike store. His total costs are $1.2 million per year, his variable costs are $750,000, and his fixed costs are $450,000 per year. Last year, Steve sold 1,200 bikes. If Steve sells 1,250 bikes this year (50 more than last year) and his a..
The U.S. government has a legal monopoly on the printing of U.S. currency. For the sake of this question, suppose the government decides to relinquish its monopoly—the Department of Justice will “break up” the federal government’s monopoly on U.S. cu..
Suppose the Herfindahl-Hirschman Index for the pulp and paper industry is 173 and the Herfindahl-Hirschman Index for the pharmaceutical industry is 446.3. What does this data suggest about the competitive landscape in the pulp and paper industry rela..
The Wall Street Journal recession probability tracker shows the likelihood that the US will enter a recession in the coming 12 month between 0 to 75 percent, the widest range since the Great Recession, despite the average likelihood trending downward..
If the quantity of output demanded at every price level increases by $1 trillion, Illustrate what happens to equilibrium output also prices.
Suppose a demand curve has a vertical intercept of (0,100). Suppose a supply curve has a vertical intercept of (0,0). The equilibrium price is $50 and the equilibrium quantity is 60. What is the total surplus in dollars?
What is the relationship between price and marginal utility?
If there are two firms in the market, what are their profits after taking into account the entry cost?
What kind of output gap does this economy have? How large is this gap? If the government wants to close the gap by changing autonomous taxes only, what should be the size and the direction of the change in T°?
illustrate the effect of capital formation by comparing the product posibility curves,at the present time and ten years in the future for two economies,one with a high and the other with a lowrate of capital formation.
Chris has $100 to spend this month on movies and/or books. A movie costs $10 and a book costs $20. Draw Chris’s budget constraint (or budget line), with the number of movies purchased on the vertical axis. What is the opportunity cost of the second b..
Suppose there is a negative externality associated with wheat production. The costs that it imposes on society from water quality and soil erosion issues are estimated to be $1.50 higher per bushel than the private costs reflected in our supply funct..
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