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Draw a graph showing the initial equilibrium. Compute the consumer surplus before the import ban and after the ban.
What are the implications for the mix of high- and low-quality apples in apple-growing areas and other regions? Where will most of the high-quality apples be so
Draw a complete graph showing Petrov's initial budget line and his initial choice. At his initial choice, the marginal utility per dollar on gasoline is utils.
Your firm uses an MRI machine to measure blood flow within the brain. If you could hook up the MRI to the typical person, what information would you collect?
Predict the effect of the import restrictions on equilibrium price of steel. Illustrate your answer with graph that shows the initial point and the equilibrium.
Predict the effect of the increase in demand on the equilibrium price of apartments.
Assume the price of public transit remains at $2. Use a graph to show the effect of the increase in the gas price on transit ridership.
By what percentage will the demand for coffee increase each year? How soon will the area have enough demand to support a fifth Starbucks?
Draw two sets of supply-demand curves, one with a more elastic supply curve. In the case of more elastic supply, is the deadweight loss larger or smaller?
Why does the rent maximum generate a deadweight loss? If not, why not? Use a supply-demand graph to depict the market with the maximum rent.
What sort of inefficiencies does the price control cause? Would you expect patients and doctors to find ways around the maximum price?
Draw a complete graph to show his assumption and logic. How would its analysis of rent control differ from Frudos? Illustrate with a complete graph.
In the equilibrium in the powdered milk market, the quantity is 100 million units and the price. Draw a graph to show the market effects of the minimum price.
What is meant by resource-oriented industries? market-oriented industries? Foot loose industries? What determines the classification of the industry?
How do transportation costs affect the H-O theorem? How do they affect the factor-price equalization theorem?
How can international trade take place according to the technological gap model? What criticisms are leveled against this model?
Why is the price lower and the number of firms greater with the larger market size with trade in a monopolistically competitive industry?
Why is it that the greater the number of firms is in a monopolistically competitive industry the lower the price is, but the higher the average cost.
What do we mean by monopolistic competition? Why do we use this model to examine intra-industry trade?
How can intra-industry trade be measured? What are the shortcomings of such a measure?
What is meant by product differentiation? Why does this result in imperfect competition? How can international trade be based on product differentiation?
What is meant by economies of scale? How can they be the basis for international trade? What is meant by the new international economies of scale?
Draw a new production frontier for Nation 2 showing the Rybczynski theorem for the doubling of the amount of capital only.
Starting with Nation 2's pre growth production frontier of previous chapters, draw a new production frontier for Nation 2 showing amount of labor doubled.
How does the shape of the trade partner's offer curve affect the change in the terms of trade resulting from a given shift in a nation's offer curve?