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"The operator of the tunnel that links Britain and France, Eurotunnel, said that commercial and tourist traffic using its car and coach shuttle service had fallen sharply in 2004, leading to a drop in operating revenues of 4%. Eurotunnel's chief executive, Jean-Louis Raymond, blamed cut-throat competition from budget airlines." (News story, January 2005)
a. If Mr. Raymond is correct, are the services of airlines and Eurotunnel substitutes or complements?
b. Use demand and supply analysis to explain how lower airfares between Paris and London impact the market for the shuttle services of Eurotunnel.
Discuss how rapid inflation can undermine money's ability to perform each of the three functions.
On the other hand, you might also analyze in detail the effects of higher unemployment among a business cycle downturn.
Utilizing a supply and demand analysis, what would placing rent controls due to the number of apartments accessible for low-income individual.
Explain the difference among comparative advantage and absolute advantage. Explain how economies benefit with specialization and trade.
We derived the total cost curve from the total product curve by assuming that the price of the variable input was constant. How would the total cost curve change if the price of the variable input increased. You should answer this by drawing two to..
Elucidate how these economic concepts can be used to address the firm's problems and opportunities.
GDP (You may use the purchase power parity figures.) Per capita GDP, GDP growth rates for the past 5 years, Percentage of GDP spent on military expenditures,Population and population growth rates for past 5 years
Elucidate whether you would draw an aggregate demand or aggregate supply diagram and predict what shift each situation would cause.
According to moderate growth your return will be 8 percent. If there is a rapid expansion, your portfolio will return 15 percent.
The one-year real rate of interest is currently estimated to be 3 percent. The current annual rate of inflation is 2 percent, and market forecasts expect the annual rate of inflation to be 5 percent. Approximately, what is the current one-year nom..
Try to comprise a discussion of elasticity and the demand curve as well as type of market. Make sure you also include some history etc.
Describe how a budget constraint of a house hold in a two-period model is affected by each of the following changes. In each case, do you think the household is better off , or worse off, or is it ambiguous.
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