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Suppose in the current year that there is a nation-wide drought for apple growers and a statewide bumper crop for oranges in both Florida and California. Which of the following statements correctly reflects the subsequent developments in the U.S. orange market?
a. Both equilibrium output and price will increase. b. Both equilibrium output and price will decrease. c. Both equilibrium output and price may decrease. d. Equilibrium output may decrease and price will increase. e. Equilibrium output will increase and price may increase.
one year later, the new class discovered that, at a price of 30 cents per can, the number of cans has fallen to 125 and two revenues are down. (A) Compute the price elasticity of demand in the first and second cases. (B) Explain what may have happ..
In the nation of Wiknam, people hold $1,000 of currency and $4,000 of demand deposits in the only bank, Wikbank. The reserve–deposit ratio is 0.25. What are the money supply, the monetary base, and the money multiplier? Assume that Wikbank is a simpl..
Suppose Ann's marginal rate of substitution between good y and good x is -2. Bill's marginal rate of substitution between good y and good x is -3. each consumer has 10 units of each good. Propose a trade between Ann and Bill that would make each cons..
The decline in cigarette sales was estimated at 8 percent. What does this imply for the elasticity of demand for cigarettes? Explain?
The ultimate result of this one-shot, simultaneous-move game depends upon the choices made by both competitors.
Explain how does the income approach to measuring GDP differ from the expenditure approach. Explain the meaning of value added and its importance in the income approach.
Assume that velocity and aggregate output are constant. If the money supply increases from $1.10 trillion to $1.18 trillion:
The cost of a water jet machine to be used for slicing cheese is $45,640. The machine will generate net annual income of $10,000 during its useful life of 7 years. Determine the rate of return of on investment in this machine. Express the answer as a..
Illustrate happens to the amount of debt held by the public. Illustrate what happens to the level of gross debt.
A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results.
what way the U.S trucking industry exemplified the capture theory hypothesis of government regulation prior to the capture theory hypothesis of government regulation prior to the passage of the Motor Carrier Act of 1980
An employee has been offered a 5 year contract for a position at a company. They offered 3 different payment terms and asked you to decide your preferred option. Draw the cash flow diagram for each option. If each of these options are to be paid 2 ti..
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