EBK MICROECONOMICS
2nd Edition
ISBN: 8220103679701
Author: List
Publisher: YUZU
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Chapter 6, Problem 9P
To determine
Change in the
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You are the manager of medium-sized company that produces a particular kind of alcoholic beverage (BB Bitters) in Ghana. You purchased most ingredients such as ethanol on a competitive market. One morning, you picked up a copy of the Graphic Business, published by the Graphic Communications Group limited, and read an article indicating that the price of ethanol is expected to rise, forcing manufacturers to produce at a high unit cost. In addition, the article indicated that your competitors are expected to reduce the price per unit of Alomo Bitters. Based on this information, what can you expect to happen to the equilibrium price and equilibrium quantity of your product? Explain your answer with an appropriate diagram.
Harriet McNeil, proprietor of McNeil's Auto Mall, believes that it is good business for her automobile dealership to have more customers on the lot than can be served, as she believes this creates an impression that demand for the automobiles on her lot is high. However, she also understands that if there are far more customers on the lot than can be served by her salespeople, her dealership may lose sales to customers who become frustrated and leave without making a purchase.
Ms. McNeil is primarily concerned about the staffing of salespeople on her lot on Saturday mornings (8:00 a.m. to noon), which are the busiest time of the week for McNeil's Auto Mall. On Saturday mornings, an average of 6.8 customers arrive per hour. The customers arrive randomly at a constant rate throughout the morning, and a salesperson spends an average of one hour with a customer. Ms. McNeil's experience has led her to conclude that if there are two more customers on her lot than can be served at any time…
Current tuition at Benedict College is around $24, 000 a year. Show what would likely happen
to demand for educational services at the school if tuition went up to $40, 000 a year.
The Ford F-150 (best selling vehicle in the U.S. for the last three decades) is currently priced at
about $40, 000 to $45, 000. Show what would likely happen to the amount of vehicles
offered for sale if the vehicle price went up to $52, 000.
You have four kids at home and they are somewhat clumsy and spill a lot of milk and other
drinks. While at DG you compare some paper towels options. The first option is a roll of
towels that contains 43 sq. ft. of paper at a price of $1.75. The second option contains
67.3 sq. ft. of paper at $2.00. Which is the better choice?
One of the problems with K-12 education in the U. S. is that there are not enough men
(especially men of color) within the classrooms. The rational is that the salaries are too
low. Show what…
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