Exploring Macroeconomics
7th Edition
ISBN: 9781285859446
Author: Sexton, Robert L.
Publisher: Cengage Learning
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Chapter 2, Problem 5P
To determine
In the case the question requires us to determine if McDonald's promotion is actually what they refer to as "free".
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Suppose Bull Gator Ben has paid his $14,300 donation and purchased eight
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Although he sold a ticket for $150, did he make a profit on the sale? (Hint:
Compare what Ben paid to his revenue from selling the ticket)
Why are demand and supply diagrams so interesting and important?
For each question,start with a supply and demand graph of the market for tennis rackets. What happens to supply or demand in each scenario? Explain why and show on graph labeling the new equilibrium point.
Chapter 2 Solutions
Exploring Macroeconomics
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- When goods are called homogenous. What does this actually means?arrow_forwardIf the economy goes into recession and income falls, what happened to inferior goods?arrow_forwardKenji sees a classified ad from Lucia offering a used digital camera for $30. On the opposite page, he sees a big color ad from a national electronics chain offering a new digital camera for $250. Kenji values a digital camera at $300 as long as it works, regardless of whether it is new or used.arrow_forward
- What if a t-shirt company ramped up production until there was a huge supply? What positive and negative effects would this have?arrow_forwardSusan sees a classified ad from Raphael offering a used DVD player for $20. On the opposite page, she sees a big color ad from a national electronics chain offering a new DVD player for $175. Susan values a DVD player at $205 as long as it works, regardless of whether it is new or used.arrow_forwardIn his landmark book on economics, Human Action, Economist Ludwig von Mises describes the consumer as the “captain of the ship.” Write a short essay addressing Mises’s claim. Is he correct? Why or why not? How does what Mises claim correspond to what we know about the laws of supply and demand?arrow_forward
- Which of the following is most likely to increase demand for NFL games? A. A successful advertising campaign about the NFL B.A law passes that will increase taxes on consumers in two years C. A decrease in the price of college football tickets D. An increase in the price of chicken wingsarrow_forwardHow is Consumer demand for products quite different from demand in the business market?arrow_forwardQ. In an article about the financial problems of USA Today, Newsweek reported that the paper was losing about $20 million a year. A Wall Street analyst said that the paper should raise its price from 50 cents to 75 cents, which he estimated would bring in an additional $65 million a year. The paper's publisher rejected the idea, saying that circulation could drop sharply after a price increase, citing the Wall Street Journal's experience after it increased its price to 75 cents. What implicit assumptions are the publisher and the analyst making about price elasticity? Thank you for your answer.arrow_forward
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