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Speedy Limo is a limousine service located on the north side of Cleveland. It specializes in transporting people to and from Hopkins International airport, although it will deliver people anywhere in the Cleveland area. It competes with taxis and public transportation as well as people deciding to drive their own cars. The demand for the firm%u2019s services has been increasing as more consumers use the service for convenience and due to higher parking rates at the airport. However, increases in gasoline prices and wage rates for drivers have increased costs for the firm. Describe the supply and demand shifts that are occurring for this firm (graphs might help in your description). What would happen to the demand curve if the major taxi companies lowered their prices? If you were asked to forecast future demand for this firm, how would you set up a forecasting model?
A group of investors is thinking about buying a ticket also sharing the proceeds if they win. The organizer offers the following deal.
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a researcher reported that he had found the demand curve for kerosene to be upward sloping.-as the price of kerosene rose the quantity demanded of kerosene increased. Illustrate what questions might you have for this researcher.
We operate 300 days per year and have found that an order must be placed with our supplier 6 working days before we can expect to receive that order.
describe briefly how consumers and incumbent firms are influenced by these externalities.
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