QUESTION What are the characteristics of price-taker markets? What do each of these characteristics mean for a market? What is the decision rule for firms to maximize profits? What happens to total revenue for a good with an elastic demand if the price increases? Why? What do economists consider for profit that accountants don’t? Give two examples that would fit in this difference. Graph the […]

QUESTION Consider a competitive oil market where a producer faces costs of $10 dollars per barrel to extract oil from the ground. Let 𝑝𝑡 denote the price of oil in period 𝑡 and let r be the interest rate. a) Suppose a firm extracts a barrel of oil in period 𝑡, write an expression for the firm’s profit per barrel. b) Assume that asset markets […]

QUESTION How would you reply? When I had taken my Public Speaking class, the professor stated that a sufficient way to use PowerPoint was to make sure we didn’t overwhelm with to much dialogue. Instead to make sure all main points are presented with supporting points. If our presentation required imagery or art then don’t overwhelm it with it. Also, having note cards in assisting […]

QUESTION The recent monetary policy response in the US to a positive shock Consider the recent monetary policy response in the world’s largest economy, the United States. It has become evident that the Federal Reserve is serious about reducing the annual rate of inflation which one year ago was 8.2% in September of 2022. Raising the US cash rate quite sharply can be an effective […]

QUESTION In New York, the price of health care services is higher than it is in Oregon. Nevertheless, consumers buy more health care services in New York than in Oregon. This suggests that the simply supply and demand model does not apply to markets of things like health care. (In your answer, please provide a diagram) ANSWER Understanding the Complexities of Healthcare Economics: A New […]

QUESTION We are examining the market for leather jackets in Ontario. Given below are the demand schedule and supply schedule for this product for one year. Accurately graph the demand and supply curves on one graph and determine equilibrium in this market. Label the graph and axises properly. State where equilibrium is (both price and quantity), don’t just point to it on the graph. Make […]

QUESTION Located centrally in a university town is UrbanWorkSpace, a co-working space catering to both students and professionals (non-students). Operating the space incurs a daily overhead of $500, which covers utilities, amenities, staff salaries, and maintenance. The demand dynamics for the coworking space are as follows: Students: 𝑄𝑠 = 210 − 3𝑃𝑠, where 𝑄𝑠 is the number of day-passes purchased by students at price 𝑃𝑠. […]