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Because bagels and cream cheese are often eaten together, they are complements. We observe that both the equilibrium price of cream cheese and the equilibrium quantity of bagels have risen. What could be responsible for this pattern-- a fall in the price of flour or a fall in the price of milk?
Irrigation improves the yield of strawberries per acre (measured in pints) according to the fucntion S= -(w-2)^2 + 50 where S is the number of pints of strawberries grown per acre and W is acre acre feet of water used. strawberries sell for $4 pe..
Explain how an AS shock such as a sudden increase in oil prices would affect the economy first in the short run and then in the long run. Assume that the United States is initially operating at its full-employment level of output.
What is the maximum amount that the money supply can increase when $1,000 cash is injected into a banking system with a 20-percent reserve requirement? Give two reasons why this maximum may not be reached.
Explain how does a business describe whether to increase or decrease the price of the product it sells in order to increase revenue
Describe when and why central banks buy either their own currency or the currency of another nation in an effort to control exchange rates.
What would happen to each firm's current profits if firm 1 reduced its price to $6 while firm 2 continued to charge $8?
A firm that has total fixed costs of $40,000 sells its output for $250 per unit and has an average variable cost of $150. If the firm's cost and revenue curves are linear, explain how much output must the firm produce to break even?
Find out the optimal weekly output and price of this firm. Find out the weekly profit from the production and sale of this product.
A coal mining company has a supply curve of W=48 + (72/2000)L and Demand of P= 60- (9/4000)Q. coal miners produce 8 tons of coal a day. they max profit.
You want to invest in a hot dog stand near the ballpark. You have 0.35 proability that you can turn your currnt $15,000 into $50,000 and a 0.65 probability that fierce completion will drive you to ruin losing all your money. If you decide not to e..
Show these data graphically. Upon what specific assumptions is this production possibilities curve based? What would production at a point outside the production possibilities curve indicate? What must occur before the economy can attain such a lev..
Elucidate the phenomenon of market foreclosure. Specifically, explain how a vertical merger may "substantially lessen competition or tend to create a monopoly".
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