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Describe what happens to the demand for Coca-Cola products when the temperature changes (for example in cold days of winter and hot days of summer). In 1999, the Coca-Cola Company began testing vending machines that use thermometers to adjust the price of its products according to the temperature. Explain the effect these vending machines have on the speed of market adjustment. Have you ever wanted to buy a soft-drink on a very hot day, only to find that the vending machines are sold out. How would widespread use of such vending machines affect the availability of soft drinks on hot summer days??
Explain why does a production possibilities curve bow out rather than forming a straight line sloping downward from left to right.
Sketch a supply and demand graph to explain this change. Be sure to label your graph and clearly indicate the change of the curve.
Determine the conditions of perfect competition. Name each and describe with an example how the real markets can violate one of more of these conditions.
The price of Canadian-grown peaches skyrockets during an unusually cold summer that reduces the size of the peach harvest and Technological improvements in the microchip lead to price reductions for personal computers and an increase in computer sale..
Suppose a friend you know requires a mortgage loan to purchase a house. Your friend can purchase it now or wait until later and is unsure of what to do.
During Dec. 2007 and Dec. 2008, measured RGDP in economy fell by 1 percent as the US economy sank into a recession. Over that same time period total employment in terms of hours worked declined by 3.7 percent
Do workers choose to work more because wages are temporarily high and do workers choose to work less because wage are temporarily low? This is key to the "intertemporal substitution" story of this chapter. The following chart shows how much wages ..
Discuss how the Federal Reserve kept the United States from sliding into a deeper recession after September 11, 2001.
Explain a situation in which a increase in the value level increases interest rates, lowers consumption, and leads to lower investment in capital goods.
Suppose a risk averse agent. Explain how many units of the contract will the agent buy if the price is q=k.
Illustrate what are the long-run effects on prices, output, and profits in monopolistic and monopolistically competitive industries.
Illustrate and explain the interaction of households, businesses, government and global markets in the circular flow of economic activity.
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