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Suppose that the current price of oil is $60 per barrel and the quantity sold is 90 million barrels per day. The current estimates of the price elasticity of supply and demand are η=1 and ε=-.2 respectively. What will be the effects on the market price and quantity if the U.S. government suddenly decides to purchase an additional 2 million barrels of oil? Assume that the addition consumption of oil by the government results in a parallel shift of the supply curve to the left by 2 million barrels per day.
The profitability of the leading cola syrup manufacturers, PepsiCo and Coca Cola, and of the bottlers in the cola business is different. PepsiCo and Coca Cola enjoy 81 operating profit as a percentage of sales; bottlers experience only 15 operatin..
The price elasticity of demand for labor will depend upon all but the:
Consider the statement, “Monopoly power comes from market acceptance, not from a patent, a prettier product, a slick advertising campaign, or anything else. So rather than spend your time in court, you should be out there drumming up business.” Do yo..
The U.S. economy experienced large trade deficits in the 1980s and 1990s and tremendous economic growth in the mid- and late-1990s.... Explain verbally the relationship between investment and long-term economic growth and describe the relationship gr..
This is related to China's Economy from 2000-2012 What did the government do during this time to either help or hinder the improvement of the economy? What was the intended impact of these government policies?
Identify one current struggling consumer product. Your paper must include a new name, changes in packaging, the price point, product position, advertising strategy, a distribution method, and improvements in design or quality.
argues that our right to breathe and the future of our planet require real regulation instead of this type of government policy. Which of the following describes why most economists would disagree with her statement?
Why are bargaining unit determinations of crucial significance in representational election outcomes and the longer-terrn relationships between the parties? Discuss.
Beth and Bob Salerno are looking at refinancing their home loan of $250,000 and have been quoted 3.75% NAR for a 30 year loan compounded monthly. What will be the remaining balance after 10 years of payments? What will be the monthly payment (assume ..
Who of the following is not in the Bureau of Labor Statistics' "employed" category?
In order to create an effective incentive compensation scheme, you must have. Principal-agent problems: Principal-agent relationships:
The government decides to tax cookbooks because they feel that they encourage overeating and can lead to health issues, such as obesity and heart disease. Answer the following
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