Problems and Applications Q7

Oyster crackers are a complement for clam chowder. If the price of clam chowder falls, the quantity of clam chowder demanded

falls

rises

which

raises

lowers

the demand for oyster crackers. Because of the change in the equilibrium quantity of oyster crackers, the demand for wheat flour by oyster crackers producers

rises

falls

, causing the equilibrium price of wheat flour to

decrease

increase

. This means producers of bread face

higher

lower

input prices, and the supply of bread

decreases

increases

. The resulting

rise

fall

in the price of bread causes people to substitute

away from cereal and toward bread

away from bread and toward cereal

, so the demand for cereal

rises

falls

Do savings and loan associations offer checking accounts?

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?

Bulldog holdings is a u.s.-based consumer electronics company. it owns smaller firms in japan and taiwan where most of its cell phone technology is developed and manufactured before being released worldwide. which of the following alternatives to integration does this best illustrate? a. venture capitalism b. franchising c. joint venture d. parent-subsidiary relationship