Questions from Microeconomics


Q: If the labor demand curve shifts to the left and the labor

If the labor demand curve shifts to the left and the labor supply curve remains unchanged, what will happen to the equilibrium wage and the equilibrium level of employment? Illustrate your answer with...

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Q: Suppose that Bill owns an automobile collision repair shop. The following

Suppose that Bill owns an automobile collision repair shop. The following table shows how the quantity of cars Bill can repair per month depends on the number of workers he hires. Assume that he pays...

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Q: Alberto Chong of the University of Ottawa and several colleagues conducted an

Alberto Chong of the University of Ottawa and several colleagues conducted an experiment to test the efficiency of government postal services around the world. They mailed letters to nonexistent busin...

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Q: Using the following graph, explain why economic surplus would be smaller

Using the following graph, explain why economic surplus would be smaller if Q1 or Q3 were the quantity produced than if Q2 is the quantity produced.

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Q: What are the main variables that will cause the demand curve to

What are the main variables that will cause the demand curve to shift? Give an example of each.

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Q: Ira Goldman invented the Knee Defender, which keeps the airline seat

Ira Goldman invented the Knee Defender, which keeps the airline seat in front of you from reclining. He argues that airlines have sold the space between two seats to the person occupying the seat but...

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Q: What effect would the following events be likely to have on the

What effect would the following events be likely to have on the price of Google’s stock? a. A competitor launches a search engine that is better than Google’s. b. The corporate income tax is abolished...

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Q: In early 2015, gasoline prices in many parts of the United

In early 2015, gasoline prices in many parts of the United States had fallen to below $2.00 per gallon, which a news story called “one of the swiftest declines on record.” Is gasoline likely to be an...

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Q: A study analyzed the costs to a pharmaceutical firm of developing a

A study analyzed the costs to a pharmaceutical firm of developing a prescription drug and receiving government approval. An article in the Wall Street Journal noted that included in the firm’s costs w...

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Q: Nobel Prize–winning economist Kenneth Arrow of Stanford University once wrote

Nobel Prize–winning economist Kenneth Arrow of Stanford University once wrote that the argument that the outcomes in a market system “may be very different from, and even opposed to, intentions is sur...

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