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In March 2002 the retail price of gasoline was $1.19 per gallon?-?exactly the same as it was in August 1990. Yet, total gasoline production and consumption rose from 6.6 million barrels per week in 1990 to 8.7 million barrels per week in 2002. Using the graph below, draw the appropriate shifts in the demand and supply curves to explain these two phenomena.
Assume the price of coffee is $2 and the price of a bagel is one dollar. bruce has 8 dollars to spend on bagels and coffe. Bruce decides to consume 2 bagels and 3 cups of coffee. Show that the last dollar spent on bagels each week gives bruce the ..
Which good would an economist normally recommend taxing if government wanted to minimize welfare loss and maximize revenue: a good with an elastic or inelastic supply? Why?
As the level of output increases, what happens to the difference between the value of average total cost and average variable cost? Decreases because average fixed cost decreases as output increases.
Discuss some of the methodological and measurement problems one might encounter in using time-series data to estimate the parameters of this model.
Which economic model do you believe is the most beneficial to YOU at the present time? Explain why
A group of venture investors is considering putting money into Lemma Books, which wants to produce a new reader for electronic books. The variable cost per unit is estimated at $250, the sales price would be set at twice the VC/unit, or $500
Suppose economists observe that an increase in government spending of $10 billion raises the total demand for goods and services by $30 billion. (a) If these economists ignore the possibility of crowding out
Comment on the statement that Zoe Cruz's demise at Morgan Stanley was because of the way she mishandled colleagues as from the way she misjudged financial risk.
Which of the following can be considered a competitive market?
Verify that the number shown in the table is correct to a single decimal place. b. The level of the CPI in March 2007 was 205.10. Calculate the CPI for March 2008
suppose your average unpaid balance is $1000 each month and your credit card's interest rate is 18 percent. What should be your total interest expense for the years
Data for the market for graham crackers is shown below. Calculate the elasticity of demand between the following prices.Price of crackers Quantity Demanded (per month)$3 80 $2.5 120
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