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A doctoral student has just completed a study for her dissertation and found the following demand and supply schedules for hand held computers to be as follows: Price/Computer Quantity Demanded Quantity Supplied $200 1000 2200 175 1250 2050 150 1500 1900 125 1750 1750 100 2000 1600 75 2250 1450 50 2500 1300 25 2750 1150 Questions: Using Microsoft Excel, draw a graph illustrating the supply and demand in this market. What is the equilibrium Price and Quantity in the market? Now suppose the government imposes a special tax on these computers. Describe what would happen in this market in terms of the supply and demand curve. Disregard the new tax in part three. Now assume that the government imposes a price ceiling of $100 in this market, as a result of protests of price gauging by the sellers. What would happen to the price and quantity in this market? Disregard the events of part four. Assume that the manufacturers of this product lobby the government’s lawmakers, in terms of this product being an essential for college students but they are considering halting production due to the lack of profits. The lawmakers agree and now set a price floor at $150. What would happen in this market? If consumers’ expectations were such that they were concerned about the economy and jobs, what would you think would happen in this market?
Which former Soviet republic currently a member of the Commonwealth of Independent States (CIS) has been the most economically successful in making this transition.
How fares paid by consumers, in East and West Berlin after unification; given that living standards are much higher in West than in East Berlin. Assume the market for taxi cabs is competitive.
illustrate what do you think will characterize the goods which the EU exports to the United States also the goods which the United States exports to the EU.
China's entry into the World Trade Organization (WTO) is likely to create more competition between local also foreign firms also provide China greater access to the marketplace for export.
Contrast two or three key economic factors for this country with the U.S. economy, and comment.
Following the war, the government of Country A would like to impose tax RMx on cars. Ilustrate and explain with graph for the car market due to the taxes. In your opinion, who will bear more of the taxes imposed-suppliers or consumers.
Compute equilibrium price also quantity. Illustrate what would have occured if price had remained the same
Illustrate what is the net current value of a project that requires a $100 investment today and returns $50 at the end of the first year and $80 at the end of the second year? Assume a discount rate of 10%.
If the value of M increased from 50,000 to 60,000 also nothing else changed which would equilibrium price increase or decrease. Would the equilibrium quantity increase or decrease.
She understands that the market interest rate for similar investment is 9 percent. Suppose annual coupon payments. What is the present price of this bond.
it is estimated that the price elasticity of demand is -3.0. Is the firm charging the optimal price for the product. Demonstrate how you know.
The research department of Wilson has discovered a new technology on how to make more durable tennis balls and is considering whether or not to adopt the new technique.
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