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During 2009, the demand for LCD televisions appeared to be falling. At the same time, some industry observers expected that several smaller television manufacturers might exit the market. Use a demand-and-supply graph to analyze the effects of these factors on the equilibrium price and quantity of LCD televisions. Clearly show on your graph the old equilibrium price and quantity and the new equilibrium price and quantity. What would a price ceiling set below the resulting equilibrium cause in the market? Explain.
What investment will you choose if your utility function were given by U(M) = M2 ? What is the certainty equivalent of the chosen investment?
Use your own life experience to explain the difference between the marginal and the average propensity to consume. In what circumstances could more saving be bad for the economy as a whole (search the Internet for the “paradox of thrift”)?
Trace through the circular flow model in Chapter 6. What is the point of the circular flow model, what are some leakages and injections into the circular flow model, and how are the leakages and injections related to the circular flow?
In jury selection, one cannot exclude potential jurors on the basis of race or other discriminatory criteria. One question is if this prohibition against discrimination should extend to potential jurors that have physical or mental disabilities. How ..
What are the major causes of currency crises, and how can countries prevent these types of crises? What should be done if a crisis occurs? Use the interest rate parity model of exchange rate determination to explain what policies should be followed d..
Suppose a firm is producing 1,000 units of output (Q). Its average fixed costs are $50. Its average variable costs are $25. What is the total cost (TC) of producing 1,000 units of output (Q)? It the price (P) of the good is $100, what is total rev..
Discuss the types of situations where you would expect to see non-constant variance in the data. Provide examples to support your response. Describe a specific instance where heteroscedasticity would be a problem and the remedial measures that could ..
In the immediate market period for a highly-perishable crop like tomatoes, the individual farmer's supply curve tends to be:
If the cost for the first semiannual period is expected to be $85, what is the present worth of the costs for a 4-year time period at an intrest rate of 1% per month?
Let's talk about companies that provide excellent customer service, and those that do not. Specifically, we are looking at a company's overall reputation, not our individual complaints or experiences. How did these companies earn their good or bad re..
The Coca-Cola Company has 40% of the cola market. Determine the probability that a sample proportion
q.the market for tennis balls is dominated by two firms wilson and penn. the research department of wilson has
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