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Consider the market for solar panels. Suppose that technological advancements allow the price of batteries, a compliment to solar panels, to decrease significantly.
1: Draw supply and demand graph showing the initial equilibrium, any supply and/or demand shift, and new equilibrium.
2: What happens to the equilibrium price?
3: What happens to the equilibrium quantity?
Consider the cap-and-trade system and the market for tradable pollution permits and answer all parts of the question. If all polluters adopt a more efficient abatement technology, how will it affect the permit price? Will the ambient environmental qu..
Create a new product that would appeal to your market. Develop at least one question for each characteristic of the target market (demographic, geographic, psychographic, and behavioral) that will be important for you as you determine the marketing s..
Suppose that disposable income, consumption, and saving in some country are $400 billion, $350 billion, and $50 billion, respectively. Next, assume that disposable income increases by $40 billion, consumption rises by $32 billion, and saving goes up ..
Consider the Rubinstein bargaining model of dividing $1 between A and B. A makes the first offer. If B accepts the offer then game ends. If B rejects the offer then B makes an offer to A in the next day. Suppose the bargaining game lasts for 4 days. ..
Bob consumes only apples and bananas. He always prefers more apples to fewer, but he gets tired of bananas. If he consumes fewer than 29 bananas per week, he thinks that 1 banana is a perfect substitute for 1 apple. His indifference curve that contai..
consider an economy in which the amount of investment is equal to the amount of savings i.e. the economy is closed to
Consider again the avocado example in the textbook, where demand and supply functions are Qd = 160 – 40p Qs = 50 + 15p Suppose a severe drought hit California, and the state government decided to subsidize farmers 40 cents for each pound of avocados ..
Write an essay titled “Is there price discrimination in the US Airline Industry?” In preparing your essay please address the following questions: Which general conditions need to exist in a market for price discrimination to be possible? How do carri..
What ways can you think of,grounded in the political economy of trade policy, by which preferences could pave the way toward world trade liberalization? How could they retard it?
Which of the following statements concerning the effects of fluctuating exchange rates on companies competing in foreign markets is NOT true.? Exchange rate shifts can produce sometimes favorable and sometimes unfavorable effects on a company's comp..
Assume you are the plant manager for Crossroads Sign Company, which produces road signs in a market that approximates perfect competition. Due to a slow economy, business has been slow and the company is losing money every month.
The bicycle industry is made up of 100 firms with the long-run cost function c1(y) = 2 + (y^2)/2 and 60 firms with the long-run cost function c2(y) = (y^2)/10. No new firms can enter the industry. What is the long-run industry supply curve for prices..
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