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Consider a drug shop that sells malaria treatment. Product can be stored costlessly from dry to rainy reason but it is impossible to store any crop from rainy to dry season. Dry season demand for malaria treatment is Xd=120-4Pd and the supply of malaria treatment in the dry season is Xd= 6Pd. Rainy season demand for malaria treatment is Xr=360-4Pr and the supply of malaria treatment in the rainy season is Xr=6Pr Compute Pr,Xr equilibrium , and Pd,Xd , and the amount of hoarding or speculation (storage) from dry to rainy season. (Hint: Think like a producer – how can you make the most money? What about arbitrage? Another hint: you can think about calculating hoarding by adding or subtracting a variable that represents hoarding to your demand and supply functions).
We are all familiar with fluctuating prices of gasoline at the pump. Explain why does this happen.
If taxes are cut, then consumption, A laissez-faire attitude toward most markets is most closely associated with, In the classical model, the supply of loanable funds is,
Compare and contrast internal and external validity. Describe and give examples of research questions for which external validity is a primary concern. Describe and give examples of research questions in which internal validity is a primary concern. ..
Amelia buys coffee for $1 per cup and tea for 50¢ per cup; every day she drinks 1 cup of coffee and 2 cups of tea. Bernard buys coffee for 50¢ per cup and tea for $1 per cup; every day he drinks 2 cups of coffee and 1 cup of tea. Can you determine wh..
Analysis of Pricing: You manage MBA Deli which sells meals at a price of $6 each. The average number of meals sold per month is 7,000. MBA Deli would like to increase its sales and profits. The MBAs running the Deli, know that if price is lowered, th..
Consider a mutual fund with $720 million in assets at the start of the year and with 10 million shares outstanding.
Suppose the money supply is currently $400 billion and the Fed wishes to increase it by $200 billion. Given a required reserve ratio of 10%, how much the Fed should increase money supply? If the Fed decided to change the money supply by changing the ..
Using the Classical Full-Employment Model, demonstrate via the three diagram setup (labor market, product market & capital market) the impact of: The symptoms of the Ebenezer Scrooge Syndrome (ESS) include compulsive parsimony and fortitude culminati..
What question for appeal did the High School consider?
Suppose that the City of Detroit enacts a rent control law that reduces all current rents by 10%. Give the short run effects of the law: If the Detroit apartment rental market is competitive. Explain whether there is a shortage of apartments, a surpl..
Suppose the demand and supply for wine within the U.S. is: Suppose the demand and supply for wine in the rest of the world (R.O.W.) is: Calculate the deadweight loss if the U.S. imposes a tariff of 25 cents per bottle of imported wine.
Prior to 1999, PepsiCo did not have a product that competed directly against Sprite and had to decide whether to introduce such a soft drink. By not introducing a lemon-lime soft drink, PepsiCo would continue to earn
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