Suppose an oil embargo results, and 30% reduction in the supply of gasoline in the US and the price of electricity of demand for gasoline in the US is $.50 for the suppose the pre-embargo price of gasoline is 150 per gallon. . What is the price of gasoline will be.
Q: In this setting, the long run effects of an increase in the saving rate include a higher level of…
A: This can be described as a model based on the concept of the growth of the nation. This model talks…
Q: The following information will be used to solve Q1-Q4 of this quiz. Consider the rental housing…
A: Price ceiling refers to legally imposed maximum price set by the government above which no one can…
Q: Complete the following table by filling in the quantity sold, the price buyers pay, and the price…
A: Tax is imposed by the government as a charge for the services provided by the government like roads,…
Q: The primary economic role of the financial system is
A: The financial system is a network of financial institutions, financial markets, financial…
Q: 60 50 40 30 20 10 0 TABLE 4-2 falling. 600 700 800 900 1000 1100 1200 Refer to Table 4-2. Using the…
A: Demand refers to the quantity of goods and services that a consumer demands in an economy. If the…
Q: A small accounting firm has 4 accountants who each earn a different salary between $50,000 and…
A: The mean is also called the average of a given list of numbers. It is obtained by adding up the…
Q: A $500 deposit into a checking account increases checkable deposits by $500, and increases the…
A: The money supply can be defined as the total volume of money held by the public at a specific time.…
Q: 6. Producer surplus and price changes The following graph plots a supply curve (orange line) for a…
A: Producer surplus is the area below price and above supply curve. The higher the price , higher will…
Q: 8. Applying the AD-AS model to a growing economy Consider a fictional economy of Shana. The…
A: Demand refers to the quantity that a consumer wises to buy at a given price in given period of time.
Q: One way of writing the goods-market equilibrium condition for a closed economy is OY=Cg+Gg+S…
A: A closed economy is a model or system of the economy that doesn't conduct any international commerce…
Q: Suppose when Sue's disposable income is $10,000, she spends $8,000, and when her disposable income…
A: The income and spending pattern of the consumer is given as follows. Disposable incomeConsumption…
Q: Suppose U.S. dollar appreciates versus the Euro. Then we should expect: a. U.S. export to…
A: When the U.S. dollar appreciates against the Euro, it means that one U.S. dollar can now buy more…
Q: When the interest rate increases, A. only the dollar amount of credit card purchases increases. B.…
A: An increase in the interest rate increases the cost of borrowing. It means that an individual…
Q: 2. Problems and Applications Q3 Suppose that people consume only three goods, as shown in this…
A: The Consumer Price Index calculates the average change over time in the prices paid by city…
Q: One of the current disputes that WTO is addressing is the "Poland - Measures concerning agricultural…
A: The World Trade Organization, sometimes known as the WTO, is an international body that regulates…
Q: Willie's widgets currently sell for $12 each. At that price, Willie has sold 40,000 widgets. Willie…
A: The responsiveness of quantity demanded to changes in price is known as price elasticity of demand.…
Q: Category Consumption (personal consumption expenditures) Investment (gross private domestic…
A: Gross domestic product is the final combination of goods and services in a country. GDP is an…
Q: In the market for widgets, the supply curve is the typical upward-sloping straight line, and the…
A: The loss of efficiency that occurs when the market equilibrium is disturbed by market distortions…
Q: Supply in a market is described by the function P = 60 + 3Q. If a per unit subsidy of subs = 10 is…
A: A supply function in economics is a mathematical representation or relationship that illustrates the…
Q: Toyota Pregame Show First Quarter Chevrolet Pregame Show $5million $5 million $3 million First…
A: Dominant strategy is one which will be successful or optimal for a firm regardless of what others…
Q: how double taxation on a taxpayer may result if all countries were to tax the worldwide income of…
A: When the same assets or income are subject to more than one tax by different taxing jurisdictions,…
Q: QUESTION 7 Suppose a hurricane destroys 20% of the capital stock in a country. In the long run,…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first question for you. If…
Q: As more time passes, the price elasticity of gasoline OA. becomes perfectly elastic. OB. stays the…
A: Price elasticity of demand (PED), sometimes known as just "price elasticity," is a term used in…
Q: Suppose there are two goods beverage and pizza and two inputs land, T, and labor, L. Given atb=4976,…
A: In economics, a production function illustrates the relationship between the quantity of output…
Q: Chris is buying apples. Suppose the price of apples is $1. Chris is willing to pay $5 for the first…
A: The issue of determining consumer surplus is one that pertains to the study of microeconomics and is…
Q: The base year in a country for the calculation of national income data is 2012. Real GDP in this…
A: The total currency worth of all items and services made as output in an economy during a year is…
Q: sider the market for paper. Suppose that a paper factory dumps toxic waste into a nearby river,…
A: It can be defined as a form of tax that is imposed by the government on the activities that generate…
Q: 16. Demand is said to be elastic if a. the price of the good responds substantially to changes in…
A: Elasticity of demand is the responsiveness of the change in quantity demand to the change in…
Q: What is the current value of Euro today. How has it behaved over against the US dollar since its…
A: Money, a critical component of modern economic systems, has undergone substantial change. Its…
Q: What is the firm's maximizing (or loss-minimizing output level? What is the amount of it's…
A: Perfect competition occurs in economic theory when all companies sell identical products, market…
Q: Consider the figure to the right. What is the effect on U.S. textile consumers' total expenditures…
A: The demand curve is the downward sloping curve. Supply curve is the upward sloping curve.…
Q: Functions like the one below are well known to economists: f(x,y) = 520 - max(24.6x,42.8y) Each…
A: A corner point, in the context of mathematical optimization and functions, refers to a point on the…
Q: The per-unit burden of the tax on buyers is a $20. b. $200. c. $300. d. $500.
A: The equilibrium is determined where the demand and supply are equal. The tax burden is shared…
Q: The graph represents the market for artichokes (in pounds per week) at a Midwest farmers' market.…
A: Producer surplus is the benefit enjoyed by producers by selling their products at a price higher…
Q: Match the given statements to the appropriate type of plastic money card. Debit card needs to be…
A: Plastic cards function as a medium of exchange, replacing fiat money in daily life. These cards are…
Q: Suppose Burundi is open to free trade in the world market for oranges. Since Burundi is small…
A: A tariff is described as a tax or duty that a government imposes on imported or exported goods.…
Q: Richland’s real GDP per person is $10,000, and Poorland’s real GDP per person is $5000. However,…
A: The term "gross domestic product" (GDP) refers to the production of goods and services at a specific…
Q: For the pizza seller whose marginal, average variable, and average total cost curves are shown in…
A: Economics is a social science that studies how individuals, businesses, governments, and societies…
Q: When organizing a meeting agenda, why is it a good idea to discuss old business before introducing…
A: In the business context, meeting organization and effective communication are essential for…
Q: If Colombia is open to international trade in oranges without any restrictions, it will import…
A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…
Q: Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all…
A: The gross domestic product (GDP) is a metric used to represent the economic output of a nation. A…
Q: one of the most common mistakes people make when doing cost benefit analysis is: a. forgetting…
A: A cost-benefit analysis is a methodical approach to analyzing the costs and benefits of a decision…
Q: The U.S. government treats the goods produced by a firm in a year that are not sold in that year as…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Which statements are true? 1 Read a demand curve up and over. 2 Read a marginal benefit curve up and…
A: Marginal Benefit Curve: Shows the extra satisfaction gained from consuming one more unit of a…
Q: If MBr=MBa, the true realised social equilibrium occurs at A point A B point B C point C D cannot…
A: Social equilibrium is a state of balance in a social system where there is no tendency for change.…
Q: The weekly demand for Pulsar DVRs is given by the demand equation p = -0.02x + 300 (0≤x≤15,000),…
A: Elasticities affect monetary and fiscal systems, allowing government authorities to make changes to…
Q: Which of the following is an example of price discrimination? Select one alternative: Airline…
A: Economics is a social science that studies how individuals, businesses, governments, and societies…
Q: Which of the following makes consumers unambiguously worse off? Question 9Select one: a. Only a…
A: Price floor is a situation where the price charged is more than or less than the equilibrium price…
Q: 45. Suppose the Federal Reserve releases a policy statement today which leads people to believe that…
A: Contractionar Monetary Policy:This is a type of monetary policy that involves the central bank…
Q: Suppose that GDP lies above potential GDP. Which of the following will occur because of the…
A: The total monetary worth of all products and services produced within a nation's boundaries during a…
Suppose an oil embargo results, and 30% reduction in the supply of gasoline in the US and the price of electricity of demand for gasoline in the US is $.50 for the suppose the pre-embargo price of gasoline is 150 per gallon. . What is the price of gasoline will be.
Step by step
Solved in 3 steps
- Price 30 MC 23 20 15 ATC D 9 12 15 \MR Quantity d) If a price ceiling of $17.50 is imposed by the government on the monopolist, estimate the quantity that the monopolist will produce based on the graph. What happens to the deadweight loss and why? (Note: no need to compute for the DWL.)C. Assume that if electricity is supplied by competitive firms, the market price is 55 and the quantity supplied is 8 (‘000 KWHs)? What is the amount of the deadweight loss to society of producing electricity by monopolist Global Gas and Electric? (It is helpful to have a graphical illustration based on the data above so you could calculate easily the DWL. )Ch Suppose that there are only three types of fruit sold in the United States. Annual sales are 1,200,000 tons of blueberries, 5,400,000 tons of strawberries, and 12,000,000 tons of bananas. Suppose that of those total amounts, the Sunny Valley Fruit Company sells 1,100,000 tons of blueberries, 900,000 tons of strawberries, and 9,200,000 tons of bananas. Instructions: Round your answers to two decimal places. a. What is Sunny Valley's market share if the relevant market is blueberries? percent If a court applies the "90-60-30 rule" when considering just the blueberry market, would it rule that Sunny Valley is a monopoly? (Click to select) b. What is Sunny Valley's market share if the relevant market is all types of berries? percent Would the court rule Sunny Valley to be a monopolist in that market?
- What is the limitations in market regulation?A movie production company is planning to make its new movie available online so that it can enjoy monopoly power. Each time the movie is downloaded the production company has to pay 4 taka to the internet service provider. Now it is deciding what price to charge for each download. The numbers below shows the demand schedule for the company, Price per download dollar - 10, 8, 6, 4, 2, 0. Quantity of downloads demands 0, 1, 3, 6, 10, 15. a) Calculate the total revenue and marginal revenue per download. b) To maximize profit what price should be charged and how many downloads would need to be sold?Proverbs 16:11 and 20:10 as well as other verses warn against unfair weights and measures. Are modern price controls such as ceiling and floors, similar? Why or why not?
- When does a company officially become a monopoly? a. when it controls more than 25 percent of the output of a certain product b. when the government decides the company is a threat to the national economy c. when a company controls the output for a marketable product without meaningful competition d. when a company controls more than 50 percent of the output of a productQuestion 4: a. The Best Computer Company just developed a new computer processor, on which it immediately acquires a patent. (i) Assuming that the production of the processor involves rising marginal cost, draw a diagram to illustrate Best Computer's profit-maximizing price and quantity. Also show Best Computer's profits. (ii) Now suppose that the government imposes a tax on each unit of the computer processor produced. On a new diagram, illustrate Best Computer's new price and quantity. How does each compare to your answer in part (i)? (iii) Draw a diagram that shows the consumer surplus, producer surplus and total surplus in the market for this new processor. iv) What happens to these three measures of surplus if the firm can perfectly price discriminate? What is the change in deadweight loss? What transfers occur?a. Tattoo artists are required to be licensed. Use a graph to show how a licensing requirement impacts the market for tattoo artists. Show the market equilibrium if there are no license requirements and also show the market equilibrium with license requirements. What happens to consumer surplus, producer surplus, and deadweight loss when licenses are required? b. Explain who wins and who loses from licensing regulation? Who pays for the licensing? Explain briefly. c. Use a graph of the tattoo market to show this positive effect. Show the market equilibrium on your graph and explain how this market equilibrium compares to the market equilibrium in which this benefit is not taken into account. e. Does licensing perform a better job of solving the asymmetric information problem than yelp or google reviews? i.e. does licensing provide a better signal of quality compared to other signals of quality such as online reviews? Explain why or why not.