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Consider the market for coffee beans. Suppose that the prices of all other caffeinated beverages go up 30 percent while at the same time a new fertilizer boosts production at coffee plantations dramatically. Can you tell what will happen to the equilibrium price? What about the equilibrium quantity?
A. Both the equilibrium price and the quantity will rise.
B. The equilibrium price will rise but the equilibrium quantity will fall.
C. The equilibrium price may rise or fall but the equilibrium quantity will rise for certain.
D. Neither the price change nor the quantity change can be determined for certain.
E. None of the above.
The following information is available for an economy: Consumption function: C = 220 + .8(Y-T) Investment: I = 400 Net Exports: NX = -140 Full Employment or Potential GDP = 3500 Currently, Calculate the current level of (equilibrium) GDP. Suppose tha..
The Short Run Total Cost of a firm is given by C= 190 + 53 Q. Find out the firm's total fixed cost. Find out the firm's total variable cost. Find out the firm's short run marginal cost.
Assume that muffins are incredibly addictive, so consumers have perfectly inelastic demand for them, up to a certain saturation point.
Among his many endorsement contracts professional golfer Tiger Wood endorses Buick automobiles. Buick reportedly recently extended his contract for another 5 years at $40 million. If Buick makes $4,000 profit per car they must expect to sell at least..
Describe the Harrod-Domar growth model, and explain precisely how the model illustrates dynamic instability. Why is it often called the knife’s edge model?
What is a socially responsible effort? Social responsibility comes from the belief that people, governments, and organizations have a responsibility to the greater welfare of society
Two friends, Rachel and Joey, enjoy baking bread and making apple pie. rachel takes 2 hours to bake a loaf of bread and 1 hour to make a pie. Joey takes 4 hours to bake a loaf of bread and 4 hours to make a pie. Who has the absolute advantage in baki..
q.johnny works for the great big cookie company gbc which buys labor at a wage of 1 an hour and uses it to produce
Illustrate what is the level of consumption at the equilibrium level of income.
Elucidate effect does the current supply and current demand have on this product.
Using the money market and bond market analysis explain how the Federal reserve could lower the interest rates by buying government bonds from the banking sector of the U.S. economy ( should included two graphs and an explanation)
The 1st way is simply to utilize the price of the product in the exporter's home marketplace as the fair marketplace value.
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