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There is a supply and a demand for most goods. The result is a market clearing equilibrium price. Companies many times (especially around Christmas) supply a certain amount of the "hot or must have" product to the market. Invariably there is more demand than supply.
A good example of this will be the new iPad 3 or Halo Reach video game (wait until Christmas and see).
Why would companies limit the number of units produced? Does this invariably lead to "black markets"? How do black markets affect the supply and demand?
What determinants of supply or demand ( book calls these "shifters") might cause a change in the supply and demand curves? Explain.
The Crank Yankers DVD season two has been a hot seller during recent weeks. An examine of weekly demand shows:
Illustrate the difference among the law of diminishing marginal returns and the law of diminishing marginal rate of technical substitution.
There be surplus supply or surplus demand. What would be the quantity of surplus demand or surplus demand.
In an article on the steel industry, The Wall Street Journal noted that as steel prices were falling, steelmakers were not cutting production-Explain how advertising can be employed to allow Tots-R-Us to keep price average above cost without encoura..
Assume you are the manager of a California winery. How would you expect the following events to affect price you will receive for a bottle of wine?
Assume Smith owns and works in a bakery located next to an outdoor cafe owned by Jones. The patrons of the outdoor cafe like the smell that emanates from the bakery.
According to CPI's estimation and in context of valuation of the major consumer products firms, do you believe analysts think the company is undervalued?
Explain how can a domestic market be protected. If a country had protected domestic market, what would be the likely effect on its balance of trade.
Calculate the predicted change in tickets sold if the price were raised to $11. Also elucidate the expected change in total revenue.
Assume the new leadership in Congress decides to repeal some of the tax breaks granted to large businesses during the past several years.
Use the data below to find out the growth of income per person (over the entire period, not an annual basis) between the two years listed.
Illustrate what price per ride must the public transportation authority charge to eliminate the deficit if it cannot reduce costs.
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