1) Aggregate expenditures modela) During Great Depression
b) High unemployment and underutilized capital
c) Prices FIXED OR STUCK because OVERSUPPLY productive resources keeping prices
d) Useful for understanding how economic shocks affect
Non-Price Determinants of Supply.
Cost of Production
- Raw Materials
Number of Sellers
Non-Price Determinants of Demand
Price of Related Goods
Example: Price o
Homework - Topic 9 - ECO-103
Create a matrix that compares the 4 industry models of competition using the characteristics
# of firms?
Barriers to entry: high or low?
Homogenous or Differentiated product?
Shape of the dema
1. (15) pts) You are in the market for a new refrigerator for your companys lounge. You have
narrowed the search down to 2 models. The energy efficient model sells for $700 and will save
you $45 at the end of each of the next 5 years in electricity costs.
1. (25 pts) A popular restaurant charges lower prices for alcoholic drinks in the late afternoon (46pm), but offers no such discounts at lunchtime or on weekends. What is different about
demand characteristics for the same product at the same location but
1. (10 pts) The Prizer Ice Cream Company has sales data for its ice cream products for 48 months
ending in June 2015. The results of a linear trend regression model using these 48 points are:
St = 30,464 + 121.3t
Where St = predicted monthly ice cream sal
1. (25 pts) The amount of fish caught per week on a trawler is a function of the crew size assigned
to operate the boat. Based on past data, the following production schedule was developed:
(Number of Men)
Amount of Fish