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Q. If the demand for corn increases due to its use as an alternative energy source, what will happen to the supply of corn's substitute such as soybean? Assume that, besides being substitutes for one another, corn and soybeans require the same raw material, such as the same farm land. Think about whether farmers will use their soybean farms to produce more or less corn. Explain, in economic terms [e.g. supply determinants], why this is so.
Q. What will happen to the price of corn oil?
Q. Explain how does the price elasticity of demand for corn oil influence the quantity-demanded of corn oil and the Total Revenue earned by sellers of corn oil? Explain, using economic terms, why this is so.
Tangents as a trigonometric function will be applied in our conversion of the Consumption Function in the Macro section of this course.
The government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially before multiplier effects.
Suppose that all the necessary conditions exist for the realization of equal wage rates in every market of labor.
Divide the Banzhaf power index by the number of votersin state. Are votersin small states or are votersin big state more powerful, according to this measure.
They could each decide to work a few extra hours on Saturday and earn more income. But they choose to play tennis or to relax around the house.
Illustrate what is the book value at the end of the third year.
Federal Reserve lowers the required reserve ratio from 0.10 to 0.05. How does this affect the simple money multiplier.
Suppose the economy is in a recession and per capita disposable income is expected to decrease by 5%, then what percentage effect on sales would you expect to take place.
Total hours worked, and average labor productivity all are procyclical. Which variable, output or total hours worked, increases by a larger percentage in expansions falls by a larger percentage in recessions.
Illustrate what is the industry's profit maximizing output level. Is the organization in long-run equilibrium.
Arnett is appearing for a new Web portal to utilize to access information which interests him on Internet.
If the reserve requirement is changed to 5 percent, Explain how much can First Bank lend and by Explain how much can the money supply be expanded.
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