Would you expect a 10% reduction in food production

Assignment Help Macroeconomics
Reference no: EM13338372

1. Suppose the Department of Agriculture ordered all farmers to reduce the acreage they plant by 10%. Would you expect a 10% reduction in food production? Why or why not?

2. The text argues that the increase in gasoline prices had a particularly strong impact on low-income people. Name some other goods and services for which a sharp increase in price would have a similar impact on people with low incomes.

3. Suppose that the United States and the European Union impose a price ceiling on crude oil of $25 per barrel. Explain, and illustrate graphically, how this would affect the markets for crude oil and for gasoline in the United States and in the European Union.

Reference no: EM13338372

Questions Cloud

What is the most important customer benefit : Assume that you are the owner-driver of a truck, whichtransports vegetables overnight from the farmers in Florida to themarkets in Atlanta. On the way back you haul whatever goods needtransporting in the opposite direction.
Percent should you borrow the money to buy this machine : Suppose you could borrow money to buy a new machine for your business, which cost $4,000. You have estimated that this new machine will increase your revenues by $4,500. If the interest rate is 12 percent should you borrow the money to buy this machi..
In which country is the cost of additional footballs general : Two countries, Sportsland and Foodland, have similar total quantities of labor, capital, and natural resources. Both can produce two goods, figs and footballs. Sportsland’s resources are particularly well suited to the production
How does this tourist perspective differ from that of : As low-carb diets increased in popularity, egg prices rose sharply. How might this affect the monks’ supply of cookies or private retreats? (See the Case in Point on the Monks of St. Benedict’s.)
Would you expect a 10% reduction in food production : Suppose the Department of Agriculture ordered all farmers to reduce the acreage they plant by 10%. Would you expect a 10% reduction in food production? Why or why not?
What is the change in clean springs profit maximizing : Suppose the Clean springs water company has a monopoly on bottled water sales in California. If the price of tap water increases, what is the change in Clean springs' profit maximizing levels of output, price, and profit?
What kinds of responses will suppliers make : What will happen in the next 50 years to the relative demand for each of the following: food, housing, energy, fuel, water?
Can we conclude that it is always a good investment to spend : It is clear that more education results in higher average life time earnings. Therefore, can we conclude that it is always a good investment to spend more income getting more education?
If monopolistically competitive firms have some control over : If monopolistically competitive firms have some control over their prices, why don't they set price above average total cost so they realize an economic profit in the long run?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Compute all meaningful price, income and cross elasticity

Compute all meaningful price, income, and cross elasticity coefficients.

  Illustrate rate of growth in fuel costs justifies going

Illustrate rate of growth in fuel costs justifies going ahead with the insulation plan? Make sure that the rate of growth and the discount rate are aligned in terms of periodss.

  Explain the optimal price and quantity combination

The demand for health club services is Q = 350 − 2P or the marginal cost of providing these services is MC = 110 + 2Q.if a two-part tariff pricing system is used what is the optimal price or quantity combination.

  What were main benefits from the activities of the goldsmith

By writing more notes than the amount of gold held, the goldsmith could lend the notes and charge interest on them. Did the goldsmith bankers make money out of thin air in a form of legal theft What were the main benefits fromt he activities of the..

  How could the issues be avoided

How could these issues be avoided? How does an understanding of your culture allow you to better understand the culture of others? The items globally marketed in those graphical area brands could be less affordable declining sales create a ripple ..

  Determine the multiplier effect for open economy

Suppose that you have following open economy where C = 10 + 0.8(Y-T); I = 10; G = 10; T = 10 and imports and exports are given through IM = 0.3Y and X = 0.3Y* respectively

  What is the present worth of the following income strings at

What is the present worth of the following income strings at an interest rate of 12%? (All cash flows occur at year end.)

  Who will repay the loan

How much can Wells Fargo lend to developer who will repay the loan by selling first 6 view lots out of 13 lots at $190,000 each 2 year from now? Assume the bank will lend at a nominal 14% per year, compounded semiannually.

  New keynesian model with technology shocks

Discuss the real output and in ation expressions verbally - New Keynesian model with technology shocks

  Unstable relationship as individual members

A cartel is often an unstable relationship as individual members both seek and seize the opportunity to cheat on the agreement and improve their own position at the expense of others.

  Buy or sell the commodity depending on its cost

This customer can buy or sell the commodity depending on its cost.

  Describe the economic situations when your position

Describe the economic situations when your position can be successfully implemented and when it may be doomed to failure.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd