Questions from Microeconomics

Q: Suppose that Jill and Joe are the only two people in the

Suppose that Jill and Joe are the only two people in the small town of Andover. Andover has land available to build a park of no more than 9 acres. Jill and Joe’s demand schedules fo...

Q: Are the cross-price elasticities of demand between the following pairs

Are the cross-price elasticities of demand between the following pairs of products likely to be positive or negative? Briefly explain. a. Iced coffee and iced tea b. French fries and ketchup c. Steak...

Q: An article in the Wall Street Journal notes that although U.

An article in the Wall Street Journal notes that although U.S. oil production has increased rapidly in recent years, the increase has still amounted to only 5 percent of world production. Still, that...

Q: Would you expect a centrally planned economy to be better at productive

Would you expect a centrally planned economy to be better at productive efficiency or allocative efficiency? Be sure to define productive efficiency and allocative efficiency in your answer.

Q: Many universities and corporations offer a health and wellness program that helps

Many universities and corporations offer a health and wellness program that helps their employees improve or maintain their health and get paid (a relatively small amount) for doing so. The programs v...

Q: Suppose we can divide all the goods produced by an economy into

Suppose we can divide all the goods produced by an economy into two types: consumption goods and capital goods. Capital goods, such as machinery, equipment, and computers, are goods used to produce ot...

Q: A number of industry analysts believe that smartphone prices will decline over

A number of industry analysts believe that smartphone prices will decline over the next few years. If these forecasts are correct, what will be the effect on the demand for smartwatches? Briefly expla...

Q: Suppose that a frost in Florida reduces the size of the orange

Suppose that a frost in Florida reduces the size of the orange crop, which causes the supply curve for oranges to shift to the left. Briefly explain whether consumer surplus will increase or decrease...

Q: Every year at the beginning of flu season, many people,

Every year at the beginning of flu season, many people, including the elderly, get a flu shot to reduce their chances of contracting the flu. One result is that people who do not get a flu shot are le...

Q: A firm that is first to market with a new product frequently

A firm that is first to market with a new product frequently discovers that there are design flaws or problems with the product that were not anticipated. For example, the ballpoint pens made by the R...