Shifting of as curve
Question: If the AS curve shifts to the right, what happens ("increases" or "decreases") to
(a) The equilibrium rate of output?
(b) The equilibrium price level?
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Suppose you are a stock market analyst specializing in the stocks of theme parks, and you are examing Disneyland's stocks. The Wall Street Journal reports that tourism has slowed down in the United States.
What are two demand determinants and two supply determinants that might explain the broad decline in house prices that occurred in those years? Is the market currently in equilibrium?
Problem: If hurricanes destroy a large percentage of orange trees in Florida, the equilibrium price of oranges in California will __________ because Florida and California oranges are __________ and have a _________ cross elasticity of demand.
The widget industry in Springfield is competitive, with numerous buyers and sellers. Consumers don't differentiate among the various brands of widgets (no product differentiation). The industry demand curve is given by:
Question: If the AS curve shifts to the right, what happens ("increases" or "decreases") to (a) The equilibrium rate of output? (b) The equilibrium price level?
There is a supply and a demand for most goods. The result is a market clearing equilibrium price. Companies many times (especially around Christmas) supply a certain amount of the "hot/must have" product to the market. Invariably there is more dem
Question: How would the following changes in price affect total revenue? That is, would total revenue increase, decrease, or remain unchanged?
Reduction in Medicare payments -- leaving PCPs scrambling to keep their practices; lack of interest in becoming a PCP; and a general shortage in qualified nurses complicate the supply chain for this increasing demand.
As a manager, it is important to understand how economic principles, and specifically supply and demand, are a part of your everyday business decisions.
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