Changes on the equilibrium price and quantity

Assignment Help Finance Basics
Reference no: EM131189989

a. The market for cell phones is initially in equilibrium. Smart Phone introduces a new phone that provides radically improved services for consumers at the same time that the Federal government decides to implement an excise tax on cell phone producers. Describe the effect of these changes on the equilibrium price and quantity in this market. Assume that this new phone only affects consumers' tastes and preferences.

b. The market for bicycles is initially in equilibrium. The Surgeon General announces that a study has been done that indicates bicycling is a major contributor to good health for those who bicycle regularly. At the same time the price of gasoline increases due to political unrest in the major oil producing regions of the world. Describe the effect of these changes on the equilibrium price and quantity in this market.

Reference no: EM131189989

Questions Cloud

Explain the ethical and legal implications : Explain the ethical and legal (if any) implications if statements such as the one you chose would continue. What might be lost in your workplace if the statements are allowed? Include at least one resource you could use to help your conversation. ..
Describes two viewpoints on the expanded homeland security : Describes two viewpoints on the expanded homeland security bureaucracy that resulted from the creation of the DHS. Take a position on the expansion debate. Support your position with facts from the text.
George opportunity cost of producing : What is George's opportunity cost of producing one loaf of bread? What is George's opportunity cost of producing one meatloaf? What is Martha's opportunity cost of producing one loaf of bread?
What are characteristic and conceptual aim of hi-tech design : What are the characteristics and conceptual aims of "hi-tech" design? Use an object from Chapter 15 to support your answer.
Changes on the equilibrium price and quantity : At the same time the price of gasoline increases due to political unrest in the major oil producing regions of the world. Describe the effect of these changes on the equilibrium price and quantity in this market.
What would be the value of the investment : The treasurer of a major U.S. firm has $36 million to invest for three months. The interest rate in the United States is .24 percent per month. The interest rate in Great Britain is .30 percent per month. What would be the value of the investment if ..
Identify one statistic of the transatlantic slave trade : Identify one statistic or aspect of the transatlantic slave trade that you find most revealing about the human cost of European expansion into the New World.
Analysis of motivation of buying behaviour of consumer : Analysis of Motivation of Buying Behaviour of Indian Consumer and the Demand for Luxury International clothing line - a Study on Louis Vuitton
Market supply curve given the above information : a. What is the market supply curve given the above information? (Hint: you might find it helpful to draw a sketch to guide your work here.) b. What is the equilibrium price and quantity in this market?

Reviews

Write a Review

Finance Basics Questions & Answers

  How will you test your question

How will you test your question? (for non numerical investigations tell me how you are going to search for articles etc and how you are going to use them)

  Calculate cash flows year 0 through year 5 related to wor

Mary is considering opening a grocery store. The store is expected to generate revenues of $200,000, $250,000, $260,000, $250,000 and $200,000 during year 1, year 2, year 3, year 4, and year 5 respectively. Net working capital requirement for operati..

  Summary about the stages of conflict management

Write a 350- to 700-word summary about the stages of conflict management. What steps will a team take to resolve conflict? What are the consequences of exhibiting behavior that could have a negative effect on the team?

  Herding/bandwagon effect and overreaction towards new inform

Herding/Bandwagon Effect: This is the tendency for individual traders to mimic the actions (rational or irrational) of the market. Individually, the trader would not necessarily have made the same choice.

  A 1000 face value bond has a remaining maturity of 10

a 1000 face value bond has a remaining maturity of 10 yearsand a required return of 9. the bonds coupon rate is

  During the sixth month of the fiscal year the program

exercise 1during the sixth month of the fiscal year the program director of the westchesternbsphome-delivered meals

  Calculate boehms total dividends for 2014

It uses a pure residual policy with all distributions in the form of dividends (35% of the $12.8 million investment is financed with debt). Round your answer to the nearest dollar.

  Computaion of market to book ratio

Computaion of market to book ratio and A firm has current assets which could be sold for their book value of $10 million

  Construct an amortization schedule showing interest

You have contracted to buy a $10,000,000 multi-family property with $2,000,000 cash down payment as equity and an $8,000,000 mortgage loan.

  Siclan company problem

The SiclanCompany is considering opening a new office.  The company owns the building and would sell it for $74,000 after taxes if it does not open the new office.

  How does one determine an optimal equity split for a deal

What issues must be considered? Do not cut and paste from textbooks. Do some actual research from graduate papers, and cite them.Give an example of an actual deal.

  From the standpoint of management are there any

from the standpoint of management are there any differences between attempting to control bad debt expense percentages

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd