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Suppose that, immediately following a sudden drop in consumer confidence, a tornado in Texas causes a severe disruption of oil supplies.
A) Make a short-run AS-AD plot depicting the drop in consumer confidence.
B) Add the short-run supply shock to the same graph
Ghana is a producer and exporter of crude oil. Since Ghana is a relatively small crude-oilproducing country, its actions do not affect world prices; as an exporter, Ghana faces a foreign demand curve that is perfectly elastic at a price of $ 15 per b..
A medical device company has a monopoly on a certain class of cardiac implants. Demand for the implants is given by P=28000-5Q and marginal revenue is given by MR=28000-10Q. The total fixed costs for the implants division is 50000 and the marginal co..
In the land of free trade, the public does not view all industries as equal. Do you believe that is ethical? Do you believe that some industries are unfairly targeted? Become an advocate for either the consumer or the industry. Prepare an argument ex..
Explain how you were to learn that a bottle of Gatorade rise in size from 2009 to 2010, should that information affect your calculation of the inflation rate.
The Kannapolis Intimidators price their tickets at $12 and average 1,600 tickets sold per game. Then they reduce their ticket price to $6, and then 2,800 tickets per game are sold. Assuming a linear demand curve, what ticket price would maximize reve..
George and Jane are next-door neighbours. George likes listening to pop music at high volume but hates opera. Jane likes listening to opera at high volume but hates pop music. What is the externality in the above case? Why might the Coase theorem not..
Consider both sides of the argument and come to a decision of whether to close the plant or continue to operate it. How would you explain to either the president or the CEO that he or she is wrong?
Suppose that Chinese manufacturers develop the ability to build a good car that costs only $5,000. They start shipping it to the U.S. For each of the following groups, say whether they are likely to win, lose or not be affected much by the Chinese..
How to create a business plan for a public company like Wal-Mart, Delta, Pepsi, Disney, Coca-Cola Etc. In one Word document, you will submit a 1 page proposal on each topic stating rationale and why it is a relevant topic on which to write the capsto..
Set up a Ricardo-type comparative advantage numerical example with two countries and two goods. Distinguish “absolute advantage” from “comparative advantage” in the context of your example. Then select an international terms-or-trade ratio and explai..
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Monopolistic competition describes an industry characterized by a _____ number of firms producing _____ products with _____ entry.
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