Predict the effect on equilibrium price and quantity

Assignment Help Business Economics

Reference no: EM1346388

1- ) Using demand and supply analysis, briefly discuss the effect of each of the following on the market for cigarettes:

a) A cure for lung cancer is found.

b) The price of cigars increases.

c) Wages increase substantially in states that grow tobacco.

d) A fertilizer that increases the yield per acre of tobacco is discovered.

2- ) How do you think each of the following affected the world price of oil?

a) A major war began in the oil-rich Middle East.

b) The Alaskan oil pipeline was completed.

c) The ceiling on the price of oil was removed.

d) Oil was discovered in the North Sea.

3- ) Suppose that there are freezing temperatures in Florida. At the same time the press reports that drinking orange juice significantly reduces the risk of stomach cancer. Predict the effect on equilibrium price and quantity.

4- ) (Economic Fluctuations) Describe the various components of fluctuations in economy activity over time. Because economic activity fluctuates, how is long-term growth possible?

5- ) (Aggregate Demand and Supply) Determine whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, neither, or both. Which curve shifts, and in which direction? What happens to aggregate output and the price level in each case?

a. The price level changes

b. Consumer confidence declines

c. The supply of resources increases

d. The wage rate increases

6-) How are economic fluctuations linked among national economies? Could a recession in the United States trigger a recession abroad?

7. How does the income approach to measuring GDP differ from the expenditure approach? Explain the meaning of value added and its importance in the income approach. Consider the following data for the selling price at each stage in the production of a five-pound bag of flour sold by your local grocer. Calculate the final market value of the flour.
Stage of Production Sale Price

Farmer $0.30
Miller $0.50
Wholesaler $1.00
Grocer $1.50

8. Given the following annual information about a hypothetical country:

Billions of Dollars

Personal consumption expenditures: $200
Exports: $30
Government purchases: $50
Gross private domestic investment: $40
Imports: $40
Government transfer payments: $20

Given this info, what is the value of GDP? What is the value of net exports?

9. What are the leakages from and injections into the circular flow? How are leakages and injections related in the circular flow?

10. Identify the component of aggregate expenditure to which each of the following belongs:
a. A US resident's purchase a new car manufactured in Japan.
b. Construction of a new house
c. A city government's acquisition of 10 new police cars
d. An increase in semiconductor inventories over last year's level

Reference no: EM1346388

Questions Cloud

Show the example of a well-designed communication plan : Example of communication plan - Give an example of a well-designed communication plan that effectively increased employee participation in a retirement plan.

Provide powerpoint presentation on is management : Provide PowerPoint Presentation on IS Management, Define the components (departments) of an IS functional area.

What is an angular velocity about the longitudinal axis : A 6 kg block slides along a frictionless horizontal surface. The block is acted on by two forces, a 4.5 N force to the left, and a 7.5 N force to the right. At what rate is the 4.5 N force doing work on the block at the instant when its speed is 4..

Communication activity - internal cash and control : Employee who maintains the accounts receivable records and ail receipts are deposited in the bank weekly by the cashier.

Predict the effect on equilibrium price and quantity : Suppose that there are freezing temperatures in Florida. At the same time the press reports that drinking orange juice significantly reduces the risk of stomach cancer. Predict the effect on equilibrium price and quantity.

Determine which project should company accept : A corporation estimates that an average-risk project has a cost of capital of 8%, a below-average risk project has a cost of capital of 6%, & an average risk project has a cost of capital of 10%.

Explain when bank of maryland will exercise the option : Explain when Bank of Maryland will exercise the option. What is Bank of Maryland's break-even 60-day spot price on the option contracts? On the futures contracts.

Show effective communication to retain employees : If your organization decided it had to reduce compensation levels to be competitive, how would you communicate that in a way that would retain key employees?

What is the speed of the bucket : A proton is placed in an electric field of intensity 700 N/C. What is magnitude and direction (towards or away from the field) of the acceleration of this proton because of this field? The charge on a proton is +1.6 x 10-19 C and the mass of a prot..

User Account

All Pages