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Using supply and demand analysis, describe the effect of each of the following events on the market for coffee: Your description should include which curve shifts, supply or demand, which way the curve shifts, left or right, if the equilibrium price increases or decreases and if the equilibrium quantity increases or decreases.
a. Brazil has a excellent harvest of coffee beans.
b. Daily drinking of tea is discovered to prevent cancer, dementia and arthritis.
c. The price of cream, milk and cream substitutes decrease.
d. Drinking coffee daily is shown to reduce weight.
e. The cost of transporting coffee beans increases.
Indicate whether each of the following is counted in this year’s GDP: You bought a new Wii at GameStop last year and resold it on eBay this year. You purchase an “Investing for Dummies” book at Barnes and Noble. You purchase a historic home using the..
Consider two bonds that have the same term to maturity, but one has a Baa rating from Moody's and the other has a C rating. Which will have the higher risk premium? Which will pay the higher interest rate? Why?
The marginal ?revenue product is:
A monopolist serving two consumers groups with demand curves PS = 12−QS and PW = 10−QW faces a constant marginal and average variable cost of $2 and considers a variety of two-part tariffs. The monopolist faces no fixed costs. Note that this pricing..
Which of the following is true about business cycles in the United States?
Consider a market where supply and demand are given by QXS = -16 + PX and QXd = 83 - 2PX. Suppose the government imposes a price floor of $36, and agrees to purchase any and all units consumers do not buy at the floor price of $36 per unit
Use production functions from the economic growth model to explain why the United States of America grew at a much faster rate than the Soviet Union in the latter half of the 20th century.
Can you explain the practice of scalping tickets for major sporting events in terms of market shortages? How else might tickets be distributed? If rent controls are so counterproductive, why do cities impose them? How else might the housing problems ..
Why do price gouging laws often fail to work?
Illustrate what is the best measure of economic well being of individuals in society.
Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a n..
Illustrate what is the expected return of the remaining portion of Peggy's portfolio.
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