An earthquake damaged car factories and decreased the production of popular Japanese cars. The demand for good

Question:

An earthquake damaged car factories and decreased the production of popular Japanese cars. The demand for good late-model used cars soared and car dealers scrambled to get their hands on used vehicles.

1. Explain the effect of the eathquake on the price of a good used car and the price of a lemon.

2. If you have a late-model car that you know isn’t a lemon, will you sell it privately or sell it to a dealer? Explain your answer.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Foundations Of Economics

ISBN: 9780134486819

8th Edition

Authors: Robin Bade, Michael Parkin

See More Books

Question Posted: Dec 08, 2023 07:47 AM

See More Questions

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...
Carol Harris, Ph.D, CPA, is a single taxpayer and she lives at 674 Yankee Street, Durham, NC 27409. Her Social Security number is 793-52-4335. Carol is an Associate Professor of Accounting at a local...
Yu Nurakami is the owner of Junes Antique shop. The shop specializes in buying antiques and selling them at a marked up price. It took a while for the shop to enter the 21st century. Currently, the...
How does the range of hFE (Fig. 3.23j, normalized from hFE = 100) compare with the range of hfe (Fig. 3.23f) for the range of IC from 0.1 to 10 mA?
BG Wholesalers is developing its annual financial statements at December 31, 2013. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and...
On April 30, 20X4, Large Inc. established a subsidiary known as Small Inc. Large invested $ 500,000 in the shares of Small. Small has no other shares outstanding. Since its establishment, small has...
Plaintiffs purchased stock warrants (rights to purchase) for blocks of Osborne Computer Corp., the manufacturer of the first mass-market portable personal computer. Because of inability to produce a...
McGill and Smyth have capital balances on January 1 of $50,000 and $40,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $22,000 for McGill and $13,000...
6. A carver begins work on a block of granite that measures 20 cm by 10 cm by 5 cm. Granite has a density of 2.7 g/cm. What is the mass of the piece of granite? a. What do you need to calculate...
Connie Pollack, a college admissions consultant, says that the challenge for the student is to find the college that pushes the right academic, financial, and social buttons to deliver four happy...
Eight small Pacific islands with control of 5.5 million square miles of prime tuna fishing waters, have tripled the access fee for U.S. tuna fishers from $21 million to $63 million and increased...
Find the min and max of the function on the given interval by comparing values at the critical points and endpoints. 25. y = 2x2 + 4x + 5, [2, 2] 27. y = 6t t2, [0, 5]
Jordan Manufacturing installed new lighting in the warehouse last year. The company also saw a 22% profit increase last year. Tia said that the new lighting must have resulted in the profit increase....
Ann wants to take out a home equity loan to purchase a second home. Her mortgage debt load will be $400,000 for the first home and $250,000 for the second home ($650,000 total). On what amount may...
Emily's state on her death includes below assets: Cottage RRSP ACB $ 410760 $259797 FV $ 736526 $350332 Assuming 55% MTR, calculate the tax her state must pay
Scenario : Alexis Earns the average salary for a welder 5-10 years into their career, which is $60,000 Is 28 years old and hasn't started saving for retirement yet. Would like to retire at 67, when...
The Financial Accounts of the United States (flow of funds or FoF) is a great source of data to understand the circular flow of economic resources in the financial system. A key shortcoming of these...
If nonfinancial measures are both more timely and more specific than financial measures, why do firms use financial measures at all?
If M = 7, s = 2, and X = 9.5, what is z?
What is the value of Michaels capital at the end of 2015? Michael is an Internet service provider. On December 31, 2014, he bought an existing business with servers and a building worth $400,000....
What was Michaels gross investment, depreciation, and net investment during 2015? Michael is an Internet service provider. On December 31, 2014, he bought an existing business with servers and a...
After you have studied Economics in the News on pp. 534 535 , answer the following questions. a. How do South Africa and Botswana compare on economic growth rates? b. For South Africa to grow...
How do cultural differences impact leadership styles and practices, and what strategies can leaders employ to effectively lead diverse teams and navigate cross-cultural challenges ?
Three forecasting methods have been used to evaluate the same economic time series. The results are Forecast from Method I Forecast from Method 2 Forecast from Method 3 Realized Value of the Series...
From The American Scholar we have the following quote: In the degenerate state, when the victim of society, he [the scholar] tends to become a mere thinker, or, still worse, the parrot of other men's...

An earthquake damaged car factories and decreased the production of popular Japanese cars. The demand for good

Question:

Step by Step Answer:

1 The increase in demand for good used cars shifts the demand curve rightwa...View the full answer

Foundations Of Economics

Students also viewed these Business questions