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1. What is the difference between a movement along and shift of the demand curve? Let us consider the demand for DVDs. What will cause a movement along the demand curve for DVDs and what will cause the demand curve for DVDs to shift? How will the curve shift? To the right or the left? Why?
2. Ice cream can be a normal good but for some people vanilla ice cream can be an inferior good. Discuss how that is possible. Give an example of a good that you consider normal and one that you consider inferior.
q.a friend of yours is considering two providers of cell phone services. provider a charges 120 per month for the
"Since the statistical discrepancy in the U.S. balance-of-payment accounts is so large, we cannot rely on the U.S. BOP statement to give information on the size of various 'balances' with any precision. Perhaps the U.S. BOP statement is essentially u..
discuss the importance of the command process and the traditional process in the making of management decisions.
Kinkead Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$10 million, but its FCF at t = 2 will be $20 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost..
Which of the following is true about perfect competition?
Consider a market with a demand curve of P=10-Q and a supply curve of P=Q. Before the imposition of a tax, equilibrium quantity is 5, and equilibrium price is $5 (verify this). If a tax of $5 per unit is placed on this market, quantity traded falls t..
How far from the building should they position their cannon? There are two possibilities (d_1
Discuss the types of barriers to entry, and explain whether each type is likely to provide long-term monopoly power. What are the allocative and distributive differences between monopoly and perfect competition? What causes these differences?
Discuss the three cultural change strategies a foreign marketer can pursue. What are they and why is it important to understand their meaning?
Assuming both types of taxes collect the same number of dollars, a wage tax is preferable to a head tax. For a “normal” good, the income and substitution effects are not opposing forces. That is, for a “normal” good, the substitution and income effec..
Consider an economy where 1999 is the base year used for all calculations of price indices and constant-price aggregates. The price of the average good counted in GDP was 5% higher in 1997 than in 1999 and real GDP in 1997 was $64,800. In 1998 the ra..
What is the present worth of $500.00 in month 1, $510.00 in month 2, and amounts increasing by $10 per month through month 36, if the intrest rate is 15% per year compounded continuously?
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