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Skyscraper City has a subway system, for which a one-way fare is $1.50. There is pressure on the mayor to reduce the fare by one-third, to $1.00. The mayor is dismayed, thinking that this will mean Skyscraper City is losing one-third of its revenue from sales of subway tickets. The mayor’s economic adviser reminds her that she is focusing only on the price effect and ignoring the quantity effect. Explain why the mayor’s estimate of a one-third loss of revenue is likely to be an overestimate.
Suppose a unit of quota rights allows the producer to sell a unit of output each year indefinitely into the future. Illustrate what increase in consumer prices will occur.
Hiro Nakamura is CEO of the Cola King Bottling Company, a small regional producer operating in the Pacific Northwest. Nakamura is considering two alternative expansion proposals
In addition to wages, what other factors influence an individual to choose one job over another? Consider jobs like those on some popular TV shows like Deadliest Catch and Ax Men. While these individuals are not guaranteed a high salary, why might th..
Illustrate what has been happening to wheat prices and what is likely to happen to wheat prices over the coming months.
Explain how each change would affect bank reserves, the money supply, interest rates and aggregate demand and how this would help improve the economy.
The price of equipment is 25,000 today. Determine the price of the equipment 3 years from now, if deflation rate is 2% in the first year and inflation rate is 1% in the second year and 4% for the third years
Suppose as to what might be the four firm concentration ratio for corn growers in the US
illustrate what is cost of each combination. Illustrate what is minimum-cost combination. Plot iso-cost curves and isoquant, explain how cost-minimizing combination.
World Trade Center and Pentagon affected short and/or long-term productivity in United States. Elucidate your response and show any movements in PPF.
As per the mathematical laws that govern the relationship between average total cost and marginal cost, where must these two curves intersect.
Show on a supply-and-demand diagram and explain in words what will happen to the Canadian exchange rate compared to the foreign exchange rate when the world demand for lumber, wheat, and paper increases.
Illustrate what might you consider to be your "fixed factor". Illustrate what alternative decisions might you be able to make in long run.
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