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1. Suppose we are looking at a supply and demand defined market for a hypothetical good called widgets. We observe that, because of falling consumer incomes, the demand for widgets increases. We also observe that, because of a reduction in the price of a resource used to make widgets the supply of widgets increase. a. Using a graphical depiction of a supply and demand model show the movement from one equilibrium to another equilibrium. b. Describe the changes in price and quantity moving from one equilibrium to another. Be sure to identify what increases, what decreases, or what may do either. 2. There are 4 types of externalities considered by economists. Positive consumption externalities, negative consumption externalities, positive production externalities, and negative production externalities. a. Construct an example of a positive production externality with evidence that it is from the real world. Evidence would include a URL or other such citation. Depict the relevant market in a supply and demand model. Show exactly what the market outcome is relative to the market outcome. Identify a policy that a government could reasonably enact to solve this instance of market failure. Show the effects of the policy in a second supply and demand graph. b. Construct an example of a negative consumption externality with evidence that it is from the real world. Evidence would include a URL or other such citation. Depict the relevant market in a supply and demand model. Show exactly what the market outcome is relative to the market outcome. Identify a policy that a government could reasonably enact to solve this instance of market failure. Show the effects of the policy in a second supply and demand graph. 3. This question relates to google, the favorite search engine of many. a. Does Google have market power? Fully explain. b. Has Google been accused of exploiting its market power? Please document at least one way in which a credible claim has been made against Google for behaving in an anti-competitive way in its market environment. I would prefer that you find two, but one would be plenty.
Give an example of how you would use this information to set the price for your product in the market place and explain one factor in detail about how shifting demand and supply curves makes market demand estimation difficult
Entitlement programs affect the economy in many ways, yet they are considered by many as not being managed efficiently. Explain how you would improve some of these programs to ensure their effectiveness and ease of management.
What are the current implications of high energy costs in the information sector and what is the potential significance of using cloud computing technologies to lower energy consumption?
Grow Fertilizers Company purchases a gravity settling tank of the $30,000 purchase price. The company finances 30% of the investment with a loan to be repaid with eight equal semiannual payments at an annual interest rate of 12% compounded semian..
The weak preference relations of Bob and Carol can be represented by real valued utility functions
Derive the pro?t frontier, and explain why total pro?ts fall as the ?rms redistribute pro?t between themselves by redistributing output.
Proposals to raise the minimum wage rate are often opposed with the argument that such a move would not only cause an increase in the unemployment rate but would also hurt the very people it is intended to help. Is there any validity to that argum..
What things impact the value of the dollar Does anyone know why the Chinese Yuan remains very weak against most currencies and thus allows them to export so much Is it fair that the Yuan is made weak against other currencies
The principal of Hamilton High School found that requiring those students who were failing algebra to attend an after- school tutoring program resulted in a 30 percent average increase in their algebra grades. Based on this success, the principal ..
When Wal-Mart locates in a smaller town, often the local retailers (e.g., hardware, clothing, and appliance stores) are unable to successfully compete and are driven out of business.
Examine your Y data (excluding the hold out period) to determine if it needs to be differenced to make it stationary. Show a time series plot of the raw Y data and autocorrelation functions (ACFs).
The manager at Sherwin -Williams store has decided to purchase a new $30,000 paint-mixing with hi-tech instrumentation for matching color and other components. The machine may be paid for in one of two ways:
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