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Assume initially that the demand and supply for premium coffees (one-pound bags) are in equilibrium. Now assume Starbucks introduces the world to pre- mium blends, and so demand rises substantially. Describe what will happen in this market as it moves to a new equilibrium. If a hard freeze eliminates Brazil's premium coffee crop, what will happen to the price of premium coffee?
Explain how should we expect this phoenomenon affect the US economy at the macro-level, short run and long run.
A pure monopolist determines that at the current level of output the marginal cost of production is $2.00, average variable costs are $2.75, and average total costs are $2.95.
Suppose the following data about the demand for goods and services. All variables are in billions of dollars. Suppose that potential level of output is $12,000 billion. Use the above data to calculate the size of the output gap?
These costs are depends on a budgeted volume of 80000 units developed and sold every year. Lafluer uses cost-plus pricing methods to set its target selling price.
Construct a table showing the marginal failure reduction (in units) and the dollar value of these reductions for each inspector hired.
Illustrate what is the point price elasticity for each person and for the market.
Explain how did the Mexican peso crisis differ from the Russian ruble crisis. What was the role of the IMF in these two currency crises.
When McDonalds Corp reduced its price of the big mac by 75 percent-Using your knowledge of game theory, what do you think disrupted McDonald's plan?
Explain how can federal government spending crowd out private sector investment and consumption.
Explain for each of the situations, decide either the bundle Lakshani is thinking about consuming is optimal or not.
Illustrate what price-quantity combination maximizes your firm's profits. What price-quantity combination maximizes revenue.
Suppose a new deposit to the US banking system of $1000. Assume that all commercial banks have a target reserve ratio of 10 percent and there is no cash drain.
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