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An American farmer sells a truckload of sugar cane to an American sugar refinery for $500.The refinery extracts the sugar from the sugar cane and sells it to Coca-Cola for $700. Coca Cola uses the sugar in its bottling plant in Toronto, Canada and the resulting Cola is sold inCanada for $1000. How will this string of transactions affect U.S. GDP? How will it affectU.S. GNP? How will it affect Canadian GNP and GDP?
You are the manager of a monopoly firm with (inverse) demand given by P = 50 − 0.5Q. Your firm's cost function is C = 40 + 5Q2. Your firm's marginal revenue is:
Now, the government starts collecting a specific tax t. What is the effect on the long-run equilibrium market quantity, market price, and the quantity for an individual firm?
During the recession of 2008-2009, and even after the recession ended, we saw the use of many monetary policy tools to stimulate the economy. Please find one article from an established source (newspapers, respected magazines, and so on), documenting..
Who wins, who loses under a wheat tax versus a subsidy? How does the deadweight loss of the tax compare to the deadweight loss of a price support subsidy? Why, in social welfare terms, is a tax a better than a subsidy?
Elasticity is a measurement of how much a change in price of a product or service will affect a change in the quantity demanded or supplied of that same product or service. The product or service can be unit elastic, inelastic, or elastic. Why is the..
Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, he..
q1. clarify how immigration between two countries could be an equalizer of wages as well as economical for both sending
Suppose an environmental regulation requires all polluters to reduce emissions by 50%, even though the cost of pollution control differs widely from one polluter to another. Why might this be inefficient, using the definition of efficiency developed ..
Why do countries trade with each other? What would happen if countries curtailed or stopped trading? Read an article about the current fight over the TPP free trade pact that is before Congress.
Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Y is -4. Determine how much the consumption of this good will chang..
When countries buy from one another what currency do they use? If the US buys goods from Japan do they give them dollars that is equal to the amount of yen it is by the exchange rate, or do they exchange their dollars for yen and then trade? Why issu..
The housing market is a great illustration of the supply and demand concepts discussed this week. The events of the past 5-7 years provide a clear illustration of how changes in supply and demand affect prices and quantities in markets. Here are some..
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