You own goods A and B. You are considering increasing price of good A by 10%. Here is the information you have

Pa = 20

Qa = 1000

For each $1 increase in Pa, Qa will decrease by 100.

Pb = 12

Qb = 750

For each $1 increase in Pa, Qb will increase by 100.

(The point of this exercise is to have you do everything the long way then use the delta r formula so you can see the difference)

a . What is Total revenue of A before the price change?

b. What is total revenue of A after the price change?

c . What is Total revenue of B before the price change?

d. What is total revenue of B after the price change?

e. What is the change of revenue for A after the price changes?

f. What is the change or revenue for B after the price changes?

g. What is change in total revenue for both goods after price changes?

h. What is the own price elasticity for good A?

i. What is the cross price elasticity of A and B?

j. Calculate the change of revenue using the formula ∆ r =[ Rx (1 + E_Qx,Px) + Ry(E_Qy,Px)]%∆P_x.

k. Explain why the two methods have different answers.

l. To calculate the change in total revenue from the price change, which method do you prefer? Doing parts a-g or doing part h-j? Briefly explain.

Only h-l

Select a specific real-world firm or market and discuss which model of market structure you think would be most appropriate to describe that market.

(ie. Perfect competition, monopolistic competition, oligopoly, monopoly.)

Real world markets never exactly meet the assumptions of the models, so you can also talk about what aspects of the real-world market may not fit the model what aspects are not well described by the model selected.

You might want to consider, if relevant in your case, factors such as: the nature of the product, factors about the production such as whether or not there are likely to be economies of scale, the number of competitors, the degree of market power, how firms compete, and outcomes such as prices, mark ups, profits and firm entry/exit.

Which of the following would not be included in United States GDP?
A. The wages and salaries of North Carolina State government workers.
B. An imported computer laser printer manufactured in Singapore and purchased by a
Virginia mail order company.
C. A Dell computer manufactured in the United States and exported to Italy for use by
an Italian college student.
D. Sale of 1000 shares of IBM stock on the New York Stock Exchange valued at the
current market price per share.
E. Both B and D.

Which of the following is most likely to decline in a recession?
A. Nominal GDP
B. Real GDP.
C. Potential real GDP
D. The natural rate of unemployment.
E. All of the above

Nominal GDP this year is $12 trillion. If personal consumption expenditures are $8
trillion, government purchases are $3 trillion, and gross private domestic
investment is $2 trillion. Then it follows that
A. net exports are $2 trillion.
B. imports exceed exports by $1 trillion.
C. exports exceed imports by $1 trillion.
D. net exports are zero

The current unemployment rate is 6 percent. If the natural rate of unemployment is
5.5 percent, then
A. the economy is at full employment.
B. there is cyclical unemployment equal to 0.5 percent of the labor force.
C. there is frictional and structural unemployment equal to 0.5 percent of the labor
force.
D. there is cyclical unemployment equal to 5 percent of the labor force.

Which of the following groups will have their real income reduced if inflation is
greater than anticipated?
A. Borrowers who incurred debts at the beginning of the year at a nominal interest rate
based on the anticipated rate of inflation.
B. Workers whose wages were set at the beginning of the year based on the
anticipated rate of inflation.
C. Social Security pension recipients whose pensions are adjusted each year
according to the actual rate of inflation.
D. Employers who signed contracts granting workers raises for a one year period at
the beginning of the year based on the anticipated rate of inflation.

The Consumer Price Index (CPI) is currently 210 with a 1983 base year. Using the
CPI to deflate current dollars to base year dollars, the purchasing power of a
$60,000 annual income measured in base year dollars is
A. $28,571
B. $40,000
C. $60,000
D. $126,000

Report about the Rise and the Fall Nokia:(case study)

What are the opportunities for Economies of Scale and Economies of Scope for NOKIA during the RISE AND THE FALL of this company? Explain

At what level of output is profit maximized for a perfectly competitive firm? Why will the firm not produce this level of output? Explain

Suppose there are two goods in an economy, X and Y. Prices of these goods are Px and Py, respectively. The income of the only agent (consumer) in the economy is I. Using this information, answer the following questions:

a. Write down the budget constraint of the consumer. Draw it on a graph and label the critical points accordingly. Provide a verbal explanation of why all income is spent, mentioning the underlying assumption for this outcome.

b. Define substitution and income effects.

c. Assuming both goods are normal, suppose Px goes down due to an excess supply of good X, whereas Py is held constant. Drawing a graph, show the substitution and income effects as well as the total effect of this price reduction. Explain the change in demands for the goods using the relation, where MU represents marginal utility. Be precise in labeling your graph and its step-by step explanation.

MUx / Px = MUy / Py

d. Looking at the sign of the total effect, discuss the relation between the price of a normal good and its demand.

e. Now suppose X is an inferior good. How does your answer to part (c) change? Drawing a new graph, comment on the signs of the substitution and income effects.

f. What is Giffen paradox? Drawing a new graph, discuss it in terms of the magnitudes of the substitution and income effects. How is the demand for a Giffen good sloped? Why? Provide the necessary definitions and explain it using the signs and magnitudes of substitution and income effects.

1. Name of the product: Strabucks Frappucino Drinks
2. Question:  Target Market - Describe the target market using market dimension variables. These are segmentation variables such as demographic, psychographics, behavioral or geographic. Only two or three sentences to precisely describe the typical user using these variables.

Share your view about any four (4) critical infrastructures that require continuous professional development.

A series of 10 end-of-year deposits is made that begins with $6,500 at the end of year 1 and decreases at the rate of $300 per year with 8% interest.

a. What amount could be withdrawn at t = 10?

b. What uniform annual series of deposits (n = 10) would result in the same accumulated balance at the end of year 10?

I would like to be able to use excel functions to solve this rather than by hand. Thanks!

(a) Outline and explain in detail four types of market failure. What types of problems do market failures give rise to in the economy? Please give an example for each of the market failures you have outlined. Diagrams are not required in this question. 30 marks

(b) Does market failure automatically mean that the government should intervene to deal with the problem? Explain your answer. This question refers to market failure as a whole and not to a particular type of market failure.10 marks

1. Consider the Solow model of economic growth, with no technological progress. Assume that δ=0.07 and n=0.03. The production function is given by Y=K^0.5 L^0.5. The savings rate s=0.5.
   

a) Calculate the steady state levels of capital per worker, output per worker and consumption per worker.

b) Now, suppose there is an exogenous change in n, which increases to n=0.055 (while δ, s and the production function remain identical). What are the new steady state levels of capital per worker, output per worker and consumption per worker?

c) Use the Solow diagram to depict the effects of the change in n on steady-state capital per worker

d) After the change in n, is it possible for the economy to go back to the level of steady-state consumption per worker that it had before the change in n by changing its savings rate?

• How does the US tax system foster inequality and effect the economy and market structures? Do you agree or disagree with the need to change the tax system? Do you think changing the tax system is possible in the current political economy? How will the tax bills which passed recently by the Senate and Congress effect your taxes? How will the effect inequality? What are your suggestions?

1. Consider the aggregate demand/aggregate supply model of Chapter 10. Assume that the long-run aggregate supply curve is vertical at Y = 3,000 while the short-run aggregate supply curve is horizontal at P = 2. The aggregate demand curve is given by Y = MV(1/P), with M = 6,000 and V=1.
   

a) Suppose that there is an adverse supply shock that shifts the short-run supply curve upwards, to P = 3. What are the values of P and Y in the short-run equilibrium after this shock?

b) What changes (if any) in the values of P and Y would take place going from the short-run equilibrium of part A to the long run (assuming no other shocks occur)?

c) If the FED wants to avoid any changes in the level of Y as a response to the supply shock, what should be the change in the quantity of money M?