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Question: Four students from your economics class are sitting in a local restaurant discussing the market for coffee. Below are quotes from each of the four students. All of the following quotes are logically correct except one. Which quote indicates incorrect economic analysis?
A. Nicholas: "If Brazil is hit hard by such a severe freeze that half of its crop is wiped out, then the price of coffee will probably rise."
B. Kendra: "If the price of caffeinated soft drinks such as Mountain Dew went down, then consumer demand for coffee would go down since they're substitutes for each other."
C. Sergei: "If the demand for coffee were to increase, then I would expect the price to rise, which would then cause the demand to fall back down to its original position."
D. Tasha: "If coffee drinkers expect the price of coffee to rise next month, then current demand will go up and lead to a price increase this month."
That being said, what are the benefits of using tools such as decision trees and simulation models when deciding on capital budgeting alternatives? Explain.
Describe how a firm's microenvironment can determine how profitable it will be? Provide examples of organizations as well as aspects of their microenvironment which have hindered or benefitted growth.
Draw an AD/AS graph and a money market graph side-by-side. For the money market, use an upward sloping money supply curve and assume that the equilibrium interest rate in the money market is 5%.
a) Identify the nature of resource cost structure and the practical significance of different costs; b) Explain the factors influencing optimum size and the significance of demand and supply relationships;
Potable water is in short supply in many countries. To address this need, two mutually exclusive water purification systems.
1.Which of the following is the path through which contractionary monetary policy works? Money down implies interest rate down implies investment up implies income down. Money down implies interest rate up implies investment up implies inco..
Describe the practice of price discrimination and its objectives
suppose a bars constant marginal cost per beer is 3.60 and it was making 40 cents per beer in variable profit without
A farmer has 5,000 acres of land, 1,000 hours of labor, and 2,000 hours of tractor time to grow two crops: corn and wheat. He expects that he can earn $250 per acre for corn and $200 per acre for wheat.
Suppose a chocolate bar manufacturer promotes its products by advertising and opportunity to win a ‘free car’. Is this car free because the winner pays zero for it?
Suppose Linda and Jack are doing Biology and Economics homework. Who has the absolute advantage in doing Biology homework? Who has the absolute advantage in doing Economics homework
Using data you can find at the World Bank website (www.worldbank.org; look under "Data and Research" then "Data by Topic") on the CBR and the CDR.
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