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Eco 550 week 5 chapter questions
1. ECO 550 Week 5 Chapter Questions
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Economics - General Economics
Week 5 Chapter 8 Question 2
2. Like supermarkets, full-service department stores like Macy’s are generally in decline. What factors
might these types of stores have in common behind their declines? How would you determine which
were important and which were not?
Week 5 Chapter 8 Question 16
For Figure 8-9, demand with zero transaction costs is and supply to 7 + 2p. a.Verify all of the
prices and quantities calculated in the discussion b. Now assume that intermediaries come from a
competitive market with an equilibrium price of $8 per unit for their services, that is, any buyer
or seller who wants an intermediary’s services must pay $8 for them. What is the maximum per
unit that sellers are willing to pay intermediaries if hiring them saves buyers $8 in transaction
costs? c. Does your answer to Question 16a change if buyers pay $8 per unit to the intermediary
but sellers offer to rebate part of that expense to buyers?