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Consider the market for automobiles, and draw representative supply and demand curves.
a) Suppose that the price of gasoline rises, and at the same time, the price of steel (an input to automobile production) falls. Show this on your graph. If you have no other information, what can you say about the change in equilibrium price and quantity?
b) Now suppose that you have the additional information that the rise in gasoline prices has been relatively large, while the reduction in steel costs has been relatively small. How would this change your answer to (a)?
Describe the dominant characteristics of the industry (military) in which your company operates, addressing the following questions: Who are your main competitors? Are they significant barriers to entry? What is your company’s market share? What is t..
Which of the following industries do you expect to have high concentration ratios: automobile production, aircraft manufacture, computer and electronics production, pharmaceuticals, production of expensive jewellery? Why do you think the specific ind..
Comparing the situation of a nominal rate of 10 percent and an inflation rate of 9 percent with a nominal interest rate of 6 percent and inflation rate of 2 percent, consumers would borrow more in which situation?
You have just been appointed the new Economic Advisor to the U.S. Government and have been asked to develop an economic series of projections for the U.S. domestic economy for the next year. Outline your new forecast based on current developments.
Adam Smith discussed how nations could benefit from trade, known as absolute advantage. What was David Ricardo’s improvement on Smith’s theory? How does it differ?
The result was an increase from $8 to $32 per unit per year. What were the effects of these changes on Belk's economic lot size and relevant costs?
What was the legal reasoning behind the Supreme Court’s decision in the Brown v. Board of Education case? What was the counterargument made by segregationists that were expressed in "The Southern Manifesto". What was the ultimate impact of the case o..
Assume that society changed as well as encouraged both young women as well as young men to consider a wide range of careers.
The strategy of tit-for-tat is
Suppose an economy has no imports and no income taxes. Its marginal propensity to consume (MPC) is $0.75, and its real GDP level is $250 billion. Businesses increase their investment by $10 billion. Calculate the multiplier and the change in GDP.
What variables to include in x. What functional form to use; should x include higher order, interaction terms of variables.
The Law of Supply suggests that the price-elasticity of supply is: If a 10 percent increase in the price of one good results in no change in the quantity demanded of another good, then it can be concluded that the two goods are: Marginal utility is t..
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