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1.A likely example of complementary goods for most people would be
a. canoes and paddles.
b. snow mobiles and sofas.
c. coffee and tea.
d. tennis balls and basketballs.
2. A rightward shift of a supply curve is called a(n)
a. decrease in supply.
b. increase in quantity supplied.
c. increase in supply.
d. decrease in quantity supplied.
Joe's utility for Coke, x_1, and Pepsi, x_2, is define by u(x_1, x_2) = 5x_1 + 5x_2. Joe has an income of $100. Let the price of Pepsi equal $1. Derive Joe's inverse demand curve (price on the vertical axis and quantity on the horizontal axis) for Co..
In 2011, the Deepwater Horizon oil spill in the Gulf of Mexico causd heavy damage to the fishing and tourism industries of Louisiana and other coastal states. In addition, there were long-term ecological impacts on fish and wildlife. In terms of depr..
You take $1000 you had kept under your mattress and deposit it in your bank account. If this $1000 stays in the banking system as reserves and if banks hold reserves equal to 20 percent of deposits, by how much does the total amount of deposits in th..
An 83-year-old woman is placed at a small table in a dark corner of a trendy nightclub also is ignored by the staff.
Do you think that monetary policy works better through the indirect effect of low interest rates or better through the direct effects of increased money and spending? Can the government cause a recession and then limit the strength and speed of the e..
Calculate the price elasticities of demand in each market and discuss these in relation to the prices to be charged in each market.
Now suppose that the city doubles the fee from $8 to $16. Let's determine what effect this will have on revenue for the city. To be conservative, let's assume that the absolute value of the elasticity of the demand for car trips in central London is ..
A firm faces the following inverse demand equation for the commodity it produces: P = 100 – Q where P represents the price/unit of the commodity it produces and Q represents the level of output produced. Find the benefit (profit) maximizing level of ..
You are a firm in the highway billboards industry. Your industry is highly concentrated, with a Herfindahl-Hirschman Index of: HHI=3,000. You wish to merge with another firm in your industry, which would cause the HHI index to rise to HHI=3,050. Prov..
A competitive firm will maximize profit by producing the level of output at which: Select one: a. None of the answers are correct. b. marginal cost equals marginal revenue. c. the firm's total revenue equals total cost. d. the additional revenue from..
What are the advantages and disadvantages of quantitative easing as an alternative to conventional monetary policy when short-term interest rates are at the zero-lower bound?
Based on the collected data analyze the current macroeconomic situation and its impact on walmart and starbucks. Explore in particular illustrate how the two companies' respond to the macroeconomic conditions in terms of their:
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