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The operator of the tunnel that links Britain and France, Eurotunnel, said that commercial and tourist traffic using its car and coach shuttle service had fallen sharply, leading to a drop in operating revenues of 4%. Eurotunnel's chief executive, blamed cut-throat competition from budget airlines?
If the CEO is correct, are the services of the airlines and Eurotunnel substitutes or complements? Use demand and supply analysis (i.e., market equilibrium) to explain how lower airfares between Paris and London impact the market for the shuttle services of Eurotunnel.
Why do you think so many state and local governments are greatly concerned about the Federal government’s allegedly lax enforcement of the immigration laws and congressional proposals to grant legal status (amnesty) to the 12 million illegal immigran..
As a result of the rapid growth of the Chinese economy, world demand for petroleum products has increased significantly. At the same time the war in Iraq has reduced that nation's petroleum production and exports to levels that are well below pre-war..
What is the price of a 9-month call option AND a 9-month put option BOTH with a strike price of $45 given the Black-Scholes Option Pricing Model and the following information? Stock Price = $48 Strike Price = $45 Time to expiration = .75 Risk-free ra..
If the marginal revenue from a product is $15 and the price elasticity of demand is ?1.2, what is the price of the product?
For each of the following scenarios involving the U.S. government, determine the primary function of government that is being served. The government levies a tax on consumers and businesses to pay for the provision of a public good (such as national ..
Explain why globalization is good for the United States. What are the drawbacks of globalization for our economy? We run huge trade imbalances with two countries. Explain the cause of the imbalances. What is the economist's case for free trade?
What would be implied by a positive price elasticity of demand?
Discuss what happens to the demand and or supply and to the equilibrium price and quantity in the market for housing as population increases and at the same time the government releases more land for housing.
Each of the readings and videos for this part of the class had an actual point of view. They were grounded in particular political values with political norms, assumptions and goals, some of which are explicit and some of which are not stated. In oth..
Explain what types of biases arise in the different approaches to understanding consumer demand and behavior.
Confused and cannot find much information about the Keynesian model? According to the Keynesian model, what are the two components of consumption spending? What factors determine how consumption changes when real disposable income changes?
Gold has recently hit record high prices. When adjusted for inflation, gold remains below a 1980 peak price of $850 per troy ounce. Suppose this 1980 price equates to $2,400 per ounce in 2014 dollars. Based on the prices of gold in 1980 and 2014, wha..
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