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UNIT 2: How Markets Work: Who Benefits from the Free Market
UNIT 2: How Markets Work: Who Benefits from the Free Market

340 Lamb-JW 17 Prici..
340 Lamb-JW 17 Prici..

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... large private companies to exploit the laborers or the resources of less-developed nations. For instance, most of the clothing worn by Americans is made in China by workers who earn less than a $1 an hour. • Market economies often result in economic monopolies (when one company controls a business s ...
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... 21. When do we say there is excess supply for the commodity in the market? When at a given price the quantity supplied of a product exceeds its quantity demanded, there is excess supply for a product. 22. When will an increase in supply imply an increase in price but no change in quantity? In case ...
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... A heavy-usage segment is at times called the “heavy half.” This is when a consumer group, or one market segment, accounts for a large proportion of a good’s or service’s sales relative to the size of the market. ...
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... Panel (a) shows the consequences of producing 4 million hamburgers per month instead of 7 million hamburgers per month. Total producer and consumer surplus is reduced by the area of triangle ABC shaded in yellow. This is called the deadweight loss from underproduction. Panel (b) shows the consequenc ...
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p($) - City University of Hong Kong

... government runs a confiscation program to arrest the counterfeiters from time to time. The program can only arrest limited number of counterfeiters. What would happen to the profits and prices of the remaining firms, which were not arrested in short run? b. What would be the long run adjustment in t ...
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... in the cost of corn used as feed for beef cattle?  An increase in the price of an input will shift the supply curve as shown in the right-hand diagram ...
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... rental rates, ATM fees Arguments for: P gouging is bad, not ‘fair’ or right to charge ‘exorbitant’ Ps, everyone should be able to buy necessities at ‘reasonable’ prices ...
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Grey market

A grey market (sometimes called a parallel import, but this can also mean other things; not to be confused with a black market or a grey economy) is the trade of a commodity through distribution channels which are legal but are unofficial, unauthorized, or unintended by the original manufacturer. The most common type of grey market is the sale, by individuals or small companies not authorised by the manufacturer, of imported goods which would otherwise be either more expensive in the country to which they are being imported, or unavailable altogether. An example of this would be the import and subsequent re-sale of Apple products by unlicensed intermediaries in countries such as South Korea where Apple does not currently operate retail outlets and licensed reseller markups are high.
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