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The world price of wine is below the price that would prevail in the United States in the absence of trade.
a) Assuming that American imports of wine are a small part of total world wine production, draw a graph for the U.S. market for wine under free trade.
b) Now suppose that a tariff is place on the importation of wine into the United States to protect domestic wine producers. What does this do to the price?
c) Draw a new diagram illustrating the price change as well as the changes to the quantity of imports.
Draw a graph similar to the one in part (a) to show the effect of the open-market operation on output and the price level. Explain in words why the policy has the effect that you have shown in the graph.
Our customers who choose to keep a car for an extra day are currently paying the same base daily rate. Do you see any potential in exploring alternative schemes? If so, what changes should we implement-shall we change the price for extra days? Wha..
ethanol is a motor fuel manufactured from corn, barley, or wheat, and it can be used to power the engines of many autos and trucks. suppose that the government decided to probide a large per-unit subsidy to ethanol producers.
consider an industry in which chief executive officers ceos run firms. there are two types of ceos exceptional and
Some reject fiscal stimulus measures in all policy forms. Explain what the various limitations are to a successful fiscal stimulus. Be sure to consider the damaging activities and decisions of (a) private corporations, (b) comm..
A company has to make a choice between two alternatives. Alternative 1 has a cost of $250000, an annual benefit of $2500 and a life of 8 years. Alternative 2 has a $100000 cost , an annual benefit of $1750 and a life of 4 years. What is the IRR of th..
select a foreign country and analyze its monetary system. research the countrys monetary system using at least five
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You are considering selling your vintage 1969 convertible Volkswagen Beetle. If the car is in good condition, it is worth a lot; if it is in poor condition, it is useful only as scrap. Assume that your car is in excellent condition but that it costs ..
An interesting example of strategic behavior comes from the 1997 article regarding Microsoft's investment in Apple (New Straits Times, 1997). The article is included in Required Readings list.
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