Reference no: EM1370589
1. If a 20% decrease in the price of long distance phone calls leads to a 35% increase in the quantity of calls demanded, we can conclude that the demand for phone calls is:
a. elastic.
b. inelastic.
c. unit elastic.
d. stretchy elastic.
2. Which of the following pairs are examples of substitutes?
a. Popcorn & Pepsi
b. Automobiles & Bicycles
c. Boats & Fishing Tackle
d. Wine & Cheese
3. When we say that a price in a competitive market is "too high to clear the market" we usually mean that (given upward-sloping supply curves).
a. no producer can cover the costs of production at that price
b. quantity supplied exceeds quantity demanded at that price
c. producers are leaving the industry
d. consumers are willing to buy all the units produced at that price
4. Which of the following statements is incorrect? Assume upward-sloping supply curves.
a. If the supply curve shifts left and the demand remains constant, equilibrium price will rise.
b. If the demand curve shifts left and the supply increase, equilibrium price will rise.
c. If the supply curve shifts right and the demand curve shifts left, equilibrium price will fall.
d. If the demand curve shifts right and the supply curve shifts left, price will rise.
Section Two: Short Answer (250 words or less)
1.Define "Elasticity of Demand". Give an example.
2.Define the "Law of diminishing Marginal utility". Give an example.
3.Demonstrate, using supply and demand analysis, the impact on the equilibrium price and quantity of new Hybrid automobiles when the following occurs. Using graphs as we did in the notes we worked with in Week 1, describe the change in the equilibrium price and quantity, and explain your answer. Is the equilibrium price higher, lower, or is the change indeterminate? Is the equilibrium quantity higher, lower, or is the change indeterminate?
a.Incomes increase
b.Interest rates decrease
c.The price of batteries used in the production of these vehicles decreases.
d.The price of gasoline decreases
4.Determine if the demand for the following products is price elastic or price inelastic, and explain your answer.
a.Box of cereal sold in a grocery store
b.Gasoline as a commodity
c.Gasoline sold at a local gasoline station
d.Fast food sold at a restaurant
e.Hotel rooms for people planning a vacation
f.Hotel rooms for people on business to meet an important client
g.Clothes sold in a discount retailer
5.Name three types of market systems and give an example of each.
|
Labor demand curve
: Describe why relatively flat as opposed relatively steep labor demand curves are more consistent with empirical observation that there are relatively minor changes in the real wage rate over course of business cycle.
|
|
Wal-mart location planning
: What are the pros and cons regarding the local businesses and the residents and how might a Wal-Mart representative respond to the negative criticisms that might be brought up?
|
|
Explain what supply challenge would red fish
: Explain What supply challenge would Red Fish and Blue Fish face in expanding into South America?
|
|
Monopolistic competition - sample question
: Find the factors of production (economic resources including natural, human and financial resources), and for each factor of production give an example of what might be needed to operate that business;
|
|
Supply curve and elasticity based questions
: If a 20 percent lowring in the price of long distance phone calls leads to a 35% increase in the quantity of calls demanded, we can conclude that the demand for phone calls is:
|
|
Implement relationship between employees and projects
: Assume further each employee has unique EmployeeNum and each project has unique ProjectNum. Describe how you would implement relationship between employees and projects in each of given scenarios.
|
|
Needs for successful management of the global business
: Management of a global business - What are the needs for successful management of the global business? How are they related to each other?
|
|
Explain the foreign market entry modes
: Explain the Foreign Market Entry Modes and look once again at your short list of potential target companies and defend
|
|
Diminishing marginal productivity
: Marginal productivity can be divided into three ranges: Increasing marginal productivity; Diminishing marginal productivity; and Negative marginal productivity.
|