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Scientists have developed a bacterium that they believe will lower the freezing point of agricultural products. This innovation could save farmers $1 billion a year in crops now lost to frost damage. If this technology becomes widely used, what will happen to the equilibrium price and quantity in, for example, the potato market?
1. Price will decrease, quantity will decrease
2. Price will decrease, quantity will increase
3. Price will increase, quantity will decrease
4. Price will increase, quantity will increase
5. The change in equilibrium price and quantity is indeterminate.
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A fall in the price level will:
Would the accumulation of historical prices and quantities exchanged in the market establish a long-run supply curve? How would the historical relationship differ from how firms (and economists) envision today's long-run supply in the industry?
Most of us participate in the economy every day. As households, we can provide labor to companies or government in the input market and we are also consumers of goods and services in product market.
Find the comparative statics for an increase in the sales tax, namely y^s/s and p^s/s , and provide an economic interpretation of them. What is the economic interpretation of an increase in the parameter a? You might want to plot the demand functi..
because of americas large budget deficits the government is borrowing much from foreign countries. there are experts
The Financial Services Modernization Act a. reinforced the Glass Steagall Act b. prevented mergers of banks c. eliminated barriers between banks, brokerage houses, and insurance companies
An investment opportunity will pay $10 with a 20% probability, $20 with a 40% probability, $30 with a 30% probability, and $40 with a 10% probability. what is the standard deviation of the investment?
suppose that you hold a piece of land in the city of london that you may want to sell in one year. as a u.s. resident
Assume initially that the demand and supply for premium coffees (one-pound bags) are in equilibrium. Now assume Starbucks introduces the world to premium blends, and so demand rises substantially. Describe what will happen in this market as it mo..
over the past 12 months the four winds novelty company firm has recorded its internet sales equals monthly output
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