Detailed examples of two goods in your life that have an elastic demand and two goods that have an inelastic demand

- Explain your reasoning being sure to apply what you’ve learned in class

- Provide your economic opinion on the EpiPen - using information from the articles and concepts covered in class

- Lastly, answer the question ‘Should a potential Covid-19 vaccine be free and available to everyone?’ Back up your opinion using economic concepts covered in class

For this question, think of the world as having two goods—movies and “all other goods,” i.e. a composite good. Your good friend Jane really likes to go to the movies and she goes quite often. You think movies are alright, but you aren’t as enamored/obsessed with them as Jane is and hence you go far less than she does. Show explain that despite these differences, at the margin, you and Jane value an addition movie at the same rate relative to the composite good. 2 pts)

1.

To adjust a company’s LIFO cost of goods sold to FIFO cost of goods sold

the ending LIFO reserve is added to LIFO cost of goods sold.

the ending LIFO reserve is subtracted from LIFO cost of goods sold.

an increase in the LIFO reserve is subtracted from LIFO cost of goods sold.

a decrease in the LIFO reserve is subtracted from LIFO cost of goods sold.

2.

All of the following statements are true regarding the LIFO reserve except:

Companies using LIFO are required to report the LIFO reserve.

The financial statement differences of using LIFO normally increase the longer a company uses LIFO.

Current ratios and the inventory turnover can be significantly affected if a company has material LIFO reserves.

The equation (LIFO inventory – LIFO reserve = FIFO inventory) adjusts the inventory balance from LIFO to FIFO.

3.

Use the following information for Tamarisk, Inc., Metlock, Inc., Grouper Industries, and Evans Services to answer the question “What is Grouper's LIFO reserve for 2021?”

$47

$530

$88

$36

4.

Use the following information for Pina Colada Corp., Sunland Company, Monty Industries, and Cynthia Services to answer the question “Using the LIFO reserve adjustment, which company would have the strongest liquidity position for 2022 as expressed by the current ratio?”

Sunland

Pina Colada

Monty

Cynthia

5.

Use the following information for Marigold Corp., Nash's Trading Post, LLC, Blue Spruce Industries, and Evans Services to answer the question “Using LIFO, what is Marigold's inventory turnover for 2022 (to the closest decimal place)?”

6.7 times

7.8 times

9.0 times

12.6 times

6.

Use the following information for Skysong, Inc., Kingbird, Inc., Bridgeport Industries, and Evans Services to answer the question “Using the LIFO adjustment, which company shows the greatest improvement in its current ratio from 2021 to 2022?”

Bridgeport

Evans

Skysong

Kingbird

7.

Manufactured inventory that has begun the production process but is not yet completed is

finished goods.

raw materials.

merchandise inventory.

work in process.

8.

Each of the following is a feature of internal control except

independent internal verifications.

limited access to assets.

generic design of documents.

authorization of transactions.

Discuss some of the effects of the economic downturn on supply, demand, inferior goods, complimentary goods, substitute goods, and price.

Why is forecasting important to businesses. What type of business forecasting do you think would best suit your line of work? Or describe a forecasting need for a company and discuss how it helps the business. Explain your answer.

Movie theaters, airlines, and many other businesses like to charge customers different prices based on time of the day, age, and purchase dates. Why?

Provide an example of a price discrimination for a good or service that you thought it to unfair. Do you still believe that the discrimination is unjustifiable?

Have you ever been in a situation where there is asymmetric information? In your situation, who had more information, you or someone else? Were you the buyer or seller? What issues or problems resulted from the situation?

Justify your answers, ideas and reasoning by using appropriate examples and references. A typical answer should be more than 200 words but no more than 500 words. In working out your answers to the Discussion Questions, you should choose examples from our text, your own experience or other relevant sources. Credit will be given for references you make to relevant examples from real life situations.

1) Law of Diminishing returns and Law of Marginal utilities public goods and private goods and how they are paid for and rationed?

2) Perfect Competition

(a) # of firms

(b) Barriers to entry

(c) Is the product homogeneous or heterogeneous

(d) Ads

(e) Firm is price taker

(f) Draw a diagram

Consider two companies A and Bsharing a market by producing identical goods (or highly substitutable goods). Company A’s marginal cost is MC=20and company B’s marginal cost is MC=10. Market demand is known to be P=100-0.001Q.

1. Find profit maximizing level of Q_Aand Q_Bunder oligopoly setting.
2. Determine the market price.
3. Determine the revenue of company A and B.
4. Determine the profit of company A and B.
5. Find collusive level of profit maximizing output for A and B(Under collusion A and B share the same MC=10and share the market equally).
6. Using a simple game theory method, show that the collusive outcome is not sustainable. Be sure to construct a 2x2 matrix with correct payoffs.

4. Suppose that people consume only three goods. Also assume that quantities of the goods are fixed during this period of time, as follows: 100 tennis balls, 10 tennis racquets, and 200 Gatorade bottles. The prices of the goods for the years 2011 and 2012 are shown in the table below

1. What is the percentage change in the price of each of the three goods? What is the percentage change in the overall price level?

2. Do tennis racquets become more or less expensive relative to Gatorade? Does the well- being of some people change relative to the well-being of others? Explain.

Goods 1 and 2 are perfect complements for Kane. He always consumes these two goods in the ratio of 2 units of good 2 for every unit of good 1. The price of good 1 is $1.00, and the price of good 2 is $4.00. Kane has $936.00 to spend. part 1) The substitution effect of a change in the price of good 2 from $4.00 to $6.00 will reduce the demand for good 2 by _______ units. part 2) The income effect of the increase in the price of good 2 from $4.00 to $6.00 will cause demand for good 2 to fall by ________ units..