Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 24, Problem 20RQ
What is on the horizontal axis of the AD/AS diagram? What is on the vertical axis?
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Problem 5
The MNO Corporation is preparing for its stockholder meeting on May 15, 2013. It sent out proxies
to its stockholders on March 15 and asked stockholders who plan to attend the meeting to respond.
To plan for a sufficient number of information packages to be distributed at the meeting, as well
as for refreshments to be served, the company has asked you to forecast the number of attending
stockholders. By April 15, 378 stockholders have expressed their intention to attend. You have
available the following data for the last 6 years for total attendance at the stockholder meeting and
the number of positive responses as of April 15:
Year
Positive Responses
Attendance
2007
322
520
2008
301
550
2009
398
570
2010
421
600
2011
357
570
2012
452
650
1. What is your attendance forecast for the 2013 stockholder meeting?
2. Are there any other factors that could affect attendance, and thus make your forecast inac-
curate?
Problem 4
Office Enterprises (OE) produces a line of metal office file cabinets. The company's economist,
having investigated a large number of past data, has established the following equation of demand
for these cabinets:
Q=10,000+6013-100P+50C
Q=Annual number of cabinets sold
B = Index of nonresidential construction
P = Average price per cabinet charged by OE
C=Average price per cabinet charged by OE's closest competitor
It is expected that next year's nonresidential construction index will stand at 160, OE's average
price will be $40, and the competitor's average price will be $35.
1. Forecast next year's sales.
2. What will be the effect if the competitor lowers its price to 832? If it raises its price to $36?
3. What will happen if OE reacts to the decrease mentioned in part b by lowering its price to
$37?
4. If the index forecast was wrong, and it turns out to be only 140 next year, what will be the
effect on OE's sales? If not, what does it measure?
Name:
Problem 1:
Managerial Economics, Assignment 5
April 20, 2025
If the sales of your company have grown from $500,000 five years ago to $1,050,150 this year, what
is the compound growth rate? If you expect your sales to grow at a rate of 10 percent for the next
five years, what should they be five years from now?
Chapter 24 Solutions
Principles of Economics 2e
Ch. 24 - Describe the mechanism by which supply creates its...Ch. 24 - Describe the mechanism by which demand creates its...Ch. 24 - The short run aggregate supply curve was...Ch. 24 - In the AD/AS model, what prevents the economy from...Ch. 24 - Suppose the U.S. Congress passes significant...Ch. 24 - Suppose concerns about the size of the federal...Ch. 24 - How would a dramatic increase in the value of the...Ch. 24 - Suppose Mexico, one of our largest trading...Ch. 24 - A policymaker claims that tax cuts led the economy...Ch. 24 - Many financial analysts and economists eagerly...
Ch. 24 - What impact would a decrease in the size of the...Ch. 24 - Suppose, after five years of sluggish growth, the...Ch. 24 - Suppose the Federal Reserve begins to Increase the...Ch. 24 - If the economy is operating in the neoclassical...Ch. 24 - If the economy is operating In the Keynesian zone...Ch. 24 - What is says law?Ch. 24 - What is Keynes; law?Ch. 24 - Do neoclassical economists believe in Keynes law...Ch. 24 - Does Says law apply more accurately in the long...Ch. 24 - What is on the horizontal axis of the AD/AS...Ch. 24 - What is the economic reason why the SRAS curve...Ch. 24 - What are the components of the aggregate demand...Ch. 24 - What are the economic reasons why the AD curve...Ch. 24 - Briefly explain the reason for the near-horizontal...Ch. 24 - Briefly explain the reason for the near-vertical...Ch. 24 - What is potential GDP?Ch. 24 - Name some factors that could cause the SRAS curve...Ch. 24 - Will the shift of SRAS to the right tend to make...Ch. 24 - What is stagflation?Ch. 24 - Name some factors that could cause AD to shift,...Ch. 24 - Would a shift of AD to the right tend to make the...Ch. 24 - How is long-term growth illustrated in an AD/AS...Ch. 24 - How is recession illustrated in an AD/AS model?Ch. 24 - How is cyclical unemployment illustrated in an...Ch. 24 - How is the natural rate of unemployment...Ch. 24 - How is pressure for inflationary price increases...Ch. 24 - What are some of the ways in which exports and...Ch. 24 - What is the Keynesian zone of the SRAS curve? How...Ch. 24 - What is the neoclassical zone of the SRAS curve?...Ch. 24 - What is the intermediate zone of the SRAS curve?...Ch. 24 - Why would an economist choose either the...Ch. 24 - On a microeconomic demand curve, a decrease in...Ch. 24 - Economists expect that as the labor market...Ch. 24 - If new government regulations require firms to use...Ch. 24 - During spring 2016 the Midwestern United States,...Ch. 24 - Hydraulic fracturing (tracking) has the potential...Ch. 24 - Some politicians have suggested tying the minimum...Ch. 24 - If households decide to save a larger portion of...Ch. 24 - If firms become more optimistic about the future...Ch. 24 - If Congress cuts taxes at the same time that...Ch. 24 - Suppose the level of structural unemployment...Ch. 24 - If foreign wealth-holders decide that the United...Ch. 24 - The AD/AS model is static. It shows a snapshot of...Ch. 24 - Explain why the short-run aggregate supply curve...Ch. 24 - Explain why the short-run aggregate supply curve...Ch. 24 - Why might it be important for policymakers to know...Ch. 24 - In your view, is the economy currently operating...Ch. 24 - Are Says law and Keynes law necessarily mutually...Ch. 24 - Review the problem in the Work It Out titled...Ch. 24 - The imaginary country of Harris Island has the...Ch. 24 - Table 24.4 describes Santhers economy. Plot the...
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