In a pure free-market: Question 7 options:   A) firms are guaranteed to survive since the government stands ready to subsidize losses.   B) firms can either make a profit, break even, or suffer losses since there are no guarantees of success.   C) firms seldom settle for the market price for their product since the law permits them to set their prices as they please. D) shortages and surpluses of goods are the norm since there is no way to get the cooperation of dozens of individual business people and thousands of customers since they can do as they please.

Suppose a market with two customers. Their demands are specified by: Q1 = 100 - 2P  and Q2 = 150 - 3P. The market supply equations is:  Supply: Qs = 9P. What is the equilibrium quantity in the market?

Problem 1 Refreshing Refreshing Trade Basics - Prices Consider the market for computers in two countries, Uruguay and Indonesia. Let's assume both have perfectly competitive domestic computer markets. In autarky (no trade), the equilibrium price of computers in Uruguay is $500, and 10,000 computers are sold. In Indonesia (under autarky), the equilibrium price of computers is $400 and 8,000 computers are sold. (a) Draw supply and demand (partial equilibrium) graphs for each of these two countries indicating how many computers are sold and at what price when neither country trades (b) Now Uruguay and Indonesia open themselves up to global trade of com- puters. Let's assume the global price of computers is $450. Describe qual- itatively what happens to the price consumers pay for computers in each of these two countries (relative to the original autarky situation) as well as how much domestic producers sell now relative to the no trade world. Also state whether each country is an importer…

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In each problem, you must explain the scenario’s effect on the market. If the quantity supplied or the quantity demanded changes, state how (increase or decrease). If one of the curves shifts, state why and the direction it shifts (left or right). You should then state the effect on price (increase or decrease). 1. Your patent runs out on your popular and necessary drug. 2. Amazon has picked your small town to be their new worldwide headquarters. 3. The country is going into a recession. You sell jewelry. 4. The price of TVs just decreased by 20% Please help me answer these questions

QUESTION 10 Which of the following would cause movement along the supply curve for oranges? A severe and prolonged freeze in northern Florida a change in the price of oranges the president proclaims that the government will provide a box of oranges to every family in America. development in Florida is causing many orange groves to be converted to subdivisions QUESTION 11 In economic terms, a market is: all the buyers and sellers of a good or a product a place where economic activity takes place a summary of economic activity assuming no government interference QUESTION 12 Equilibrium in an economic market is when: price equals Quantity the market clears and there are the same number of buyers and sellers is where the price is equal to the demand the supply and the quantity supplied are equal

A: Decide whether each of the following statement is TRUE or FALSE, and explain the reason for your justification and correct the false statements: A firm is adopting a new technology in the production of its good. We should expect that demand for this good will shift to the right.

Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X in each of the following situations: a. The price of input A decreases. b. An excise tax of $3 is imposed on good X. c. An ad valorem tax of 7 percent is imposed on good X. d. A technological change reduces the cost of producing additional units of good X.

s) In one graph, show what would happen to the market price and quantity for lemons, which can be produced from the same resources as bananas, as a result of the new findings above bananas.

Question 4   Which of the following is NOT a characteristic of a competitive market?   Multiple Choice   At least one of the producers has significant market power.   Externalities do not exist in the market.   There is free entry into the market.   There are many buyers in the market.