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Consider the market for black grouper. Credible news reports laud the medicinal qualities of eating this fish. Simultaneous credible reports tell of the declining black grouper population. Use comparative statics to predict what will happen to the equilibrium price and quantity in the black grouper market.
The Paradise Shoes Company has estimated its weekly TVC function from data collected over the past several months, as TVC = 3450 + 20Q + 0.008Q2 where TVC represents the total variable cost and Q represents pairs of shoes produced per week. Describe ..
How much has personal income changed the last two years? Identified any problems the government needs to address, and possible solutions?
The prisoner's dilemma exercise assumes
Describe the factors that influence the reliability of time-series forecasts. Under what circumstances would a time-series model offer a fairly reliable forecast?
Priority Mail has been one of the most profitable products for the U.S. Postal Service, growing six times faster than first-class deliveries over the period from 1995 to 1999 and accounting for almost 8 percent of the Postal Service’s mail revenue. Y..
Autonomous aggregate expenditures decreases by $200 million, the marginal propensity to consume is 0.50, marginal propensity to invest is 0.25, and the marginal propensity to import is 0.10. Calculate the change in income.
Suppose that the long-run world demand and supply elasticities of crude oil are -0.906 and 0.515, respectively. The current long-run equilibrium price is $30 per barrel and the equilibrium quantity is 16.88 billion barrels per year. Derive the linear..
What checks and balances are required for these three levels after Americas latest mortgage meltdown?
Suppose you are hired by the Martin guitar company as an economic consultant. You estimate the demand for Martin guitars to be Q = 8000 - 2P. Suppose the supply of Martin Guitars is given by Q = -2000 +3P. What is the equilibrium price of Martin guit..
Canada has a private market for the provision of health services, and until about 1970, spent the same % of GDP as the US on healthcare. Since that time, however, the rate of healthcare inflation in Canada is far lower than in the US. Does this mean ..
Max has the utility function U(x, y) = x(y + 1). The price of x is $2 and the price of y is $1. Max’s Income is $11. How much x does Max demand? How much y? If his income doubles and prices stay unchanged, will Max’s demand for both goods double?
The long-run cost of gas is 100. The price step size is 1.25. The initial price of gas is two steps below the long-run cost. The well produces 10 units of gas in the first period of drilling and 7 in the second period of drilling. When will the produ..
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