••Two different energy companies handled these shocks differently:o Griddy Energy offers a variable rate plan that allows customers topay wholesale prices. Their electric rates change based on themovement of the electricity supply and demand? What happenedto these customer's bills?o Brazos Electric Power Cooperative purchases power wholesale butdistributes to customers at a capped price. What happened theBrazo customers and what happened to Brazos who had to paywholesale prices to ERCOT, Texas's electric grid operator?With Texas operating an electric grid isolated from the nation's powerinfrastructure, Quantity supplied is capped. (For this example, considerthis to be a quota). What happened to Texans because of this finite levelof supply? [Hint: Many froze to death]. Make sure you show arepresentation of supply, demand, and the cap on supply when youexplain.

The objective of the question is to understand the impact of different pricing strategies on…

Answered: • • Two different energy companies…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Energy Source Percentage Coal The table given to the right represents the summer power-generating capacity by energy source in a certain county in a recent month. What conclusions can you reach Hydro about the source of energy in this country that month? 22 5.3 Natural gas Nuclear 42.1 8.2 Solar Wind 1.4 8.4 Other 12.6 ... What conclusions can you reach about the source of energy in the country that month? Select all that apply. O A. Together, the power generating capacity of Natural gas and Coal made up less than a half of the responses. O B. Together, the power generating capacity of Other, Wind, Nuclear, Hydro and Solar made up less than a half of the responses. O C. In that month, power generating capacity of Natural gas was the highest. D. In that month, power generating capacity of Coal was the highest.
II Financial Crisis Suppose that banks are less able to raise funds and so lend less. Consequently, because people and households are less able to borrow, they spend less at any given price level than they would otherwise. The crisis is persistent so lending should remain depressed for some time. Refer to Financial Crisis. What happens to the price level and real GDP in the short run? Select one: O a. the price level falls and real GDP rises O b. the price level rises and real GDP falls Oc. both the price level and real GDP fall O d. both the price level and real GDP rise Next page age 7 Fast Fourier Tran.pdf 6 LC_USING _DFT.pdf 2 Introduction to..pdf 3 DT Processing of..pdf MST.pdf ype here to search
1.- What is the expected result on total energy consumption (quantity) when there is an increase in energy efficiency? 2.- Explain the gov incentive/price control that causes demand curve to shift back (left) What is resultant market Price & Quantity?
3. Consider a dynamic (two-period) representative firm's problem. This representative firm is given K unit of capital to produce in the current period. Firm can choose (current-period and future-period) labor demands and investment (to adjust future- period's capital stock) to maximize its present-value lifetime profit. Given that the market interest rate is r and the capital depreciation rate is & after production in each period. Let's further assume that this firm sells all the capital after future-period production. (a) Clearly definite the profit functions for both periods and write down this repre- sentative firm's problem. (b) Write down the optimal condition on investment. Intuitively explain the optimal condition. (c) Suppose K increases, graph the change of investment curve. Intuitively explain the changes on the graph you just drew.
$40,000 37,000 35,000 0 Du 900 Cars per week (a) Flexible price DH + $37,000 DH D D₂ 0 700 900 1150 Cars per week (b) Fixed price Refer to the above diagrams, one can conclude that if expectations are always fulfilled, Fancy Auto Company: has to adjust both optimal output level and employment accordingly. will never have to adjust the optimal output and employment levels accordingly. has to adjust the optimal output level but not the employment. has to adjust the employment level but not the optimal output.
4. The figures below show the market demand and supply curves of a share in a company and its adjustment process. Two different price dynamic curves (PDE1 and PDE2) are shown. Based on the figures, determine whether each of the following statements are true or false. Adjustment process PDE, P:= Pr1 Supply PDE, Po Demand 45° P Qo Po Quantity, Q Price shock (a) Both PDE, and PDE, lead to bubbles. (b) PDE2 is an example of a stable equilibrium. (c) With PDE1, if P1 is greater than Po then P2 would be less than Po. (d) With PDE2, if P1 is greater than Po then P2 would be greater than P1. Price, P
There is much speculation on how the current foreclosure market will evolve due to a variety of factors such as The expiration of COVID related forbearance and mortgage protection programs. • Discuss how these factors will change the foreclosure market in the coming year. Following essay format
3. Consider a dynamic (two-period) representative firm's problem. This representative firm is given K unit of capital to produce in the current period. Firm can choose (current-period and future-period) labor demands and investment (to adjust future- period's capital stock) to maximize its present-value lifetime profit. Given that the market interest rate is r and the capital depreciation rate is & after production in each period. Let's further assume that this firm sells all the capital after future-period production. (a) Clearly definite the profit functions for both periods and write down this repre- sentative firm's problem. (b) Write down the optimal condition on investment. Intuitively explain the optimal condition. (c) Suppose K increases, graph the change of investment curve. Intuitively explain the changes on the graph you just drew.
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A Company's stock currently pays a dividend of $5 dollars per year and you expect that dividend to grow by 3% every year, forever, such that next year you expect the dividend to be 5.15, to be 5.3045 the year after that, and so on. If your discount rate is 9%, a fair price for this stock today is_____.If your discount rate were to fall to 7%, holding all else the same, the fair price of the stock would increase to_________.

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