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Let's say that companies that produce and sell silk shirts hire analysts to analyze the economy and make guesses about the future, and that those analysts predict that the economy will worsen and fewer people will want to buy silk shirts next month. To make this extra clear, let's say that the analysis is done in Month One, and the change in how many people will want to buy silk shirts is expected to occur in Month Two. In Month One, the likely effect on the market for silk shirts will be: A. P* up, Q* down B. P* up, Q* up C. P* down, Q* down D. P* down, Q* up E. A movement to the right along the supply curve.
Imagine you are a manager for the good or service used above. From the results of the regression equation, suggest strategies to either maintain demand.
Illustrate what are the benefits also costs to the US economy of labor migration (illegal also legal) into the United States from Mexico.
Merit goods have received considerable attention. Can concerts and other publicly provided services be rationalized using these ideas.
Describe why teenagers tend to accumulate low wages yet proportionally higher human capital than adult workers.
Graphically elucidate the derived storage function and carefully explain and show how you determined the location of the two intercepts of the function.
explain how many car companies will buy a new car assembly machine. Interest payments are made once a year.
Explain what the GDP cost index is and what is its role in differentiating nominal GDP and real GDP.
Suppose that the market for engagement rings is in equilibrium. Then political unrest in South Africa shuts down the diamond mines there. South Africa is the world's primary supplier of diamonds. What will happen.
How much labor should the firm employ? What are its resulting output and profit? What effect will this have on the firm's optimal output? Explain.
Illustrate fiscal policy action might increase investment and speed economic growth.
Kramer Smith owns a dry-cleaning service also is thinking about changing his advertising expenditures for the year.
What is the equilibrium price? What is the equilibrium quantity? (d.) If the market price is $5 will there be a surplus or a shortage? Of how much?
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