Consumers expressed outrage at the high price of chainsaws after Hurricane Andrew hit Florida and Louisiana, with newspaper editorials accusing suppliers of unconscionable price gouging. Use a supply and demand graph to assist in explaining the increase in the price of chain saws after Hurricane Andrew
An increase in the number of downed trees led to an increase in the demand for chain saws. When demand increases and supply is unchanged, equilibrium price and quantity increase (Figure 4-24). "Gouging" may be nothing more than a higher equilibrium price due to an increase in demand.
Figure 4-24
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Which of the following are services included among top U.S. exports?
a. automobiles and aircraft b. insurance and banking c. sports and athletic training d. nursing and home care
Identify the type of merger in each of the following situations and indicate how the post-merger concentration ratio for the industry is affected
a. A steel company merges with a coal and iron ore mining company.b. Staples, a retailer of office supplies, acquires Office Depot, another retailer of office supplies.c. An oil company merges with pipeline, shipping, and railroad companies as well as refineries and gas stations.
What is the primary function of the Term Asset-Backed Securities Loan Facility?
A. Provide funding support for collateralized securities such as student, auto, and credit card loans. B. Provide securities loans to primary dealers for one-month terms. C. Provide overnight loans to primary dealers willing to post loan-backed securities as collateral. D. Provide loans to U.S. financial institutions to purchase commercial paper.
Most economists believe that the return of ________ during the 2007-2009 recession is a key reason why the recession was so severe
A) high tariffs B) financial instability C) rapid inflation D) high interest rates