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Consider the market for pizza in a small college town with multiple pizzerias. Initially supply and demand are given by S1 and D, such that equilibrium is at E1. A number of pizzerias close, reducing supply. First, use the double drop line drawing tool to label the new equilibrium E2. Due to the price increase some surplus that was going to consumers now goes to the remaining producers. Use the quadrilateral drawing tool to shade this region, labeling it "Transferred". Due to the decline in supply, there is lost consumer and producer surplus that was received prior to the supply decline. Use the triangle drawing tool to shade the area of consumer surplus that was previously earned that is lost. Label it LostCS. Likewise, use the quadrilateral drawing tool to shade the are of producer surplus that was previously earned that is now lost. Label it LostPS.
Gina has the choice of two bonds, one that pays 5 percent interest and the other that pays 10 percent interest. Which of the following is most likely?
For the sake of argument (and this assignment) assume that global warming is a fact, caused by human activity, and that it can be fixed by taxing producers for the amount of carbon they release. The problem is that this tax would greatly increase cos..
The Quantity Equation MV = PY can be expressed as follows: (Growth Rate in the Money Supply) + (Percentage Change in Velocity) = (Inflation Rate) + (Growth Rate of Real GDP) Given this fact, suppose money velocity falls by 50% because individuals and..
List the four dimensions of opportunity management. How would you describe your time management skills? List the four time-saving techniques used by time-conscious people and describe how you can use each to increase your time management.
Consider the following game. A firm currently on the market (incumbent firm) faces the potential entry of one firm (the entrant). If the incumbent remains alone on the market, his profit is 1000. The incumbent can try to convince the entrant to do no..
case study - technology and economic change getting the benefits fromtasks to be undertakenbull read chapter 13 in
Suppose the dollar exchange rates of the euro and the yen are equally variable. Which currency, the euro or the yen, would you consider riskier.
Suppose that Best National Bank currently has $50,000 in demand deposits and $32,500 in outstanding loans. The Federal Reserve has set the reserve requirement at 10%. Reserves? Required Reserves? Excess Reserves?
Given that the own-price elasticity of demand for shirts is -0.5, if the price of shirts decreases by 10%, what will happen to the quantity demanded of shirts?
Illustrate what will be the long run market equilibrium price also output. Elucidate how many mills of Illustrate what type - new or old - will survive.
Recently, the owner of a Trader Joe’s franchise decided to change how she compensated her top manager. Last year, she paid him a fixed salary of $55,000 and her store made $115,000 in profits (not counting payment to her top manager). She suspected t..
In the country of Growlandia the labor force grows by 3% per annum, while the capital stock grows by 4% per annum. Suppose 40% of national income goes to labor. Suppose the country’s actual rate of growth is 5% per annum. Calculate the value of the r..
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