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Indicate whether each of the following statements describes an increase in demand, decrease in demand, change in quantity demanded, increase in supply, decrease in supply, or change in quantity supplied in the given market.
a. Store-brand soup prices are cut, reducing sales of Campbell’s soup. Market: Campbell’s soup.
b. Coffee bean prices hit an 18-month low following a bountiful harvest. Market: coffee beans.
c. A summer heat wave leads to higher prices for bottled water. Market: bottled water.
d. Holiday clothing discounts boost clothing sales. Market: clothing.
e. Apple introduces a tinier and more powerful iPod model. Market: older iPod models.
Given the following model: Y = C + I + G + (X-M) Question 1 Suppose that: Autonomous Consumption = $500 MPC = 0.75 Taxes = $400 Investment = $500 Government Spending = $1200 Exports = $300 Imports = $500. Suppose that full employment GNP (FE Y) is = ..
International trade benefits both partners, though not necessarily all citizens. Absolute advantage determines trade specialization. Tariffs are generally preferred by economists over quotas. The U.S. has a large trade deficit with China, although it..
Short-run losses may be incurred in order to gain the future benefits of lower AC that result from greater knowledge and experience. A balance of stability and change must be maintained in an organization to take advantage of knowledge and experience..
f the money supply is Ms1 and the goal of the monetary authorities is full-employment output Qf, they should:
Find the following equivalent amounts if the interest rate is 8% compounded annually.
What does it mean when we say that a firm enjoys increasing returns to scale? What are some factors that contribute to a firm achieving increasing returns to scale (or economics of scale) in the long run?
Suppose there are two types of workers: high-ability and low-ability. Workers know their own abilities but firms do not. A high school diploma costs a high-ability person $10,000 and costs a low-ability person $15,000. What value of $K guarantees tha..
Median length of stay was 1.1 days shorter when a hospitalist cared for a Medicare patient. Median cost per case was $853 less (excluding physician fees). There were no significant differences in mortality, 30-day readmissions, or transfers. Hospital..
According to Banerjee and Duflo, are poor people caught in a poverty trap, so that their pursuit of the things they need for immediate subsistence prevent them from saving up for better health care and education? Explain their position and the eviden..
In a town of 120,000 potential "football fans," the football team draws the following attendees per game, at the various prices shown: If the team can charge ANY prices it wants (including different prices to men and women), what price(s) should it c..
Those who advocate that the Fed target monetary aggregates, usually argue that the Fed should not alter its monetary targets in response to temporary changes in macroeconomic conditions, yet those who advocate interest rate targeting never recommend ..
What is the annual percentage rate (apr) on a loan that charges interest of .75 percent per month? B. what is the effective annual rate (ear) on the loan described in (a)
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