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The government imposes a minimum price on gasoline that is above the equilibrium price. You accurately predict that A. the law will create an excess supply of gasoline. B. gas stations will start refurnishing their stations. C. less gasoline will be available to buy. D. the law will have no economic impact.
Shadow Bank 411 buys $3 million more securities in the market and "pays" for them with its account at Bank 411. Bank 411 borrows $3 million more as a first response.
Consider the market for electronics. Patents are granted to investors of a product or process for a certain number of years. The reason for this is to encourage innovation in the economy, without the existence of patents; it is argued that research a..
Refer to the above graph for a profit-maximizing monopolist. At equilibrium, the firm will be earning:
Suppose the market for cigarettes is characterized by the following information: Suppose the government imposes a sales tax of $2 per unit. Calculate the Dead-WeightLoss due to the sales tax.
Kermit is considering purchasing a new computer system. The purchase price is $130,725. Kermit will borrow one-fourth of the purchase price from a bank at 10 percent per year compounded annually. The loan is to be repaid using equal annual payments o..
A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find out that consumers won't buy it because they don't like the taste. From an economic prespective, the company should?
Are you for or against free trade? Are you for or against NAFTA? What is the economic basis for trade? Explain the underlying facts that support free trade and give an example of a good that you purchased recently that is based on resource difference..
Suppose Mike and Johnson produce two products- hamburgers and T-shirts. Mike produces 10 hamburgers or 3 T-shirts a day and Johnson produces 7 hamburgers or 4 T-shirts. Assuming they can devote time in making either hamburgers or T-shirts. Draw the p..
Using a figure describing both the U.S. money market and the foreign exchange market, analyze the effects of a permanent decrease in the U.S. money supply on the dollar/euro exchange rate in the long-run.
Jim’s diner is just about to open in Memphis, Tennessee. However, Jim is trying to decide whether he wants to offer Coke or Pepsi soda products. He determines that, to offer either product, he will have to spend $1,600 in sunk costs to purchase and i..
Draw a graph showing a set of isoquants that depict capital and labor to be perfect complements (not substitutable at all) in a production function that exhibits constant returns to scale. Be sure to label the input and output levels on the isoquants..
Mike finds a Coke machine in an abandoned part of town and is extremely thirsty. The Coke machine requires exact change - two quarters and a dime. No other combination of coins will make anything come out of the machine.
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