Economists use for a goods, Macroeconomics

Assignment Help:

Your local newspaper reports the following: the owners of the New Orleans Sandwich Shop in Seattle, Washington, found that when they priced their hot dogs (reportedly the rolls-royce of tube steaks) at $3.00 each, "sales were awful." When they raised the price to $3.45, sales doubled. When they raised the price to $3.75, sales doubled again!

A. Draw a diagram to show what the demand curve for these hot dogs apparently looked like.

B. Can you think of a reason why sales rose as price increased?

C. What term do economists use for a good such as this one?

D. The New Orleans Sandwich Shop slipped into oblivion when the Fran-further opened down the street and sold got dogs for $1.50. Why?


Related Discussions:- Economists use for a goods

Price of dvd players decreases, If the price of DVD players decreases, we c...

If the price of DVD players decreases, we can expect that the demand for DVDs will: a. increase. b. be unaffected. c. shift left. d. Decrease

George and harriet, Consider an economy in which George and Harriet consume...

Consider an economy in which George and Harriet consume only ale and bread. George's utility function is UG = aG(bG- 1) where aG and bG are his consumption of ale and bread. Harrie

Solve equilibrium price and the equilibrium quantity, Suppose that a widget...

Suppose that a widget market is described by the following supply and demand equations. Supply: Q = 3 P Demand: Q =400 - P a. Solve for the equilibrium price and the

Explain is curve with inflation, Q. Explain IS curve with inflation? T...

Q. Explain IS curve with inflation? The IS curve with inflation  We can draw IS curve for a given value of π e . As earlier explained, IS curve isn't affected by changes

Weights of a sample of five boxes, The weights of a sample of five boxes be...

The weights of a sample of five boxes being sent by FedEx are: 48, 24, 28, 12, and 40. (a) Compute the range. (b) Compute the mean deviation. (c) Compute the standard devi

Explain the competitive model, Identify and explain the evidence for and ag...

Identify and explain the evidence for and against the competitive model. Provide specific examples.

Calculate the desired capital stock, Suppose that the desired capital stock...

Suppose that the desired capital stock is given as: K* = 0.3Y/i r Where Y = GDP, and i r is the real interest rate.  Suppose further that Y = $5 trillion and that i r

What is money wage rate, What is money wage rate While the money wage ...

What is money wage rate While the money wage rate or nominal wage rate is the hourly wage rate calculated in money that a worker receives for supplying labour, the real wage r

Marginal tax rates imposed on individuals and families, Compared with the s...

Compared with the situation before 1981, the marginal tax rates imposed on individuals and families with high incomes are now lower. What was the top marginal personal income tax r

Pat, Explain the concept of diminishing returns to labor.

Explain the concept of diminishing returns to labor.

Write Your Message!

Captcha
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