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For each of the situations below analyze what happens to the supply and demand curves, and then decide the impact on the equilibrium price and quantity in the market for lemonade. Graphs as part of your answer.
a. Suppose this market is initially in equilibrium and then the price of lemons, a key ingredient in lemonade, increases. What do you predict will happen to the equilibrium price and quantity of lemonade due to this change?
b. Suppose this market is initially in equilibrium and then the Surgeon General’s Office issues a report highlighting the health benefits from drinking lemonade. Holding everything else constant, what do you predict will happen to the equilibrium price and quantity of lemonade due to this change?
c. Suppose this market is initially in equilibrium and then both the price of lemons and the Surgeon General’s Report (this events are described in parts (a) and (b)) simultaneously occur. What do you predict will happen to the equilibrium price and quantity of lemonade due to these changes?
How would you use these cost and revenue estimates to determine whether a sales force increase or possibly a decrease is warranted.
If taxes were cut by 1 trillion adn the mpc was .8 how much would total spending. Increase in the first year with two spending cycles? Increase over an infinite time perios?
q1. as your corporation when life gives you lemons inc. is opinion about expanding the numeral of stands that it
q.prepare a word document that addresses each of the following questions as well as submit to your instructor.some
On the grounds of economic efficiency, do you think such a proposal to raise taxes on gun and ammunition sales worthy of attention? Discuss in terms of appropriate economic models
Based upon a monthly payment, which one is a better deal on the same $9000 car? 9% interest on the full amount for 48 months, compounded monthly.
Is this enough information to classify the industry as an oligopoly? Is a high concentration ratio evidence that an industry is not competitive?
SaveUmoney Tax Services (STS) is a small operation that offers tax services to individuals and small businesses. A local marketing consultant has estimated the weekly demand for STS's services as follows: Q = 1200 - 6 P + 25 A where: Q = the number o..
The federal per unit excise tax on gasoline is increased and an industry analyst predicts that the increase will be entirely passed on to consumers. Show two cases in which the analyst would be correct. How likely is it that either of these two cases..
Who are the stakeholders in this case, and what are their stakes? The ban received approval from the New York City Board of Health, but a state Supreme Court judge subsequently halted it. Mayor Bloomberg vowed to appeal. Irrespective of the legal wra..
Use indifference curve analysis to show how the Social Security pension system can reduce annual consumption for some workers who have a strong preference for current versus future consumption.
Do you see our communities growing closer together or further apart. One page double spaced.
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