Answrr he following economics questins

8. Find an article that identifies a change in supply or a change in demand. Use the article to fulfill the following instructions and questions: a) Copy and paste the article into your homework assignment. Be sure and cite your reference for the article. Indicate the source, author, title, date, and page for the article you have chosen. b) Write a short summary addressing the following items: i. What shift occurred in either supply or demand and in which direction would the supply or demand have shifted. ii. What factor changed that caused the shift. Describe the changes in the factor that have occurred. iii. Indicate evidence in the article of whether the market is an international, national, regional, or local market. 9. Read the article, The Price of Wine is Dropping Fast, provided at the following: https://www.cnn.com/2020/02/16/business/grape-surplus-cheap-wine- trnd/index.htmlAnswer the following three questions: a. What factors led to an increase in the supply of wine? b. What factors led to a decrease in demand for wine? c. What will the industry need to do to restore the long-term equilibrium in this market? 10. Explain what an externality is and then give an example. How can government correct a negative externality? How can government encourage a positive externality?8. Find an article that identifies a change in supply or a change in demand. Use the article to fulfill the following instructions and questions: a) Copy and paste the article into your homework assignment. Be sure and cite your reference for the article. Indicate the source, author, title, date, and page for the article you have chosen. b) Write a short summary addressing the following items: i. What shift occurred in either supply or demand and in which direction would the supply or demand have shifted. ii. What factor changed that caused the shift. Describe the changes in the factor that have occurred. iii. Indicate evidence in the article of whether the market is an international, national, regional, or local market. 9. Read the article, The Price of Wine is Dropping Fast, provided at the following: https://www.cnn.com/2020/02/16/business/grape-surplus-cheap-wine- trnd/index.htmlAnswer the following three questions: a. What factors led to an increase in the supply of wine? b. What factors led to a decrease in demand for wine? c. What will the industry need to do to restore the long-term equilibrium in this market? 10. Explain what an externality is and then give an example. How can government correct a negative externality? How can government encourage a positive externality?A medical study was carried out between 1 January 2001 and 1 January 2006, to assess the survival rates of cancer patients. The patients all underwent surgery during 2001 and then attended 3-monthly check-ups throughout the study. The following data were collected: For those patients who died during the study exact dates of death were recorded as follows: Patient Date of surgery Date of death 1 April 2001 1 August 2005 1 April 2001 1 October 2001 1 May 2001 1 March 2002 1 September 2001 1 August 2003 E 1 October 2001 1 August 2002 For those patients who survived to the end of the study: Patient Date of surgery 1 February 2001 1 March 2001 1 April 2001 1 June 2001 1 September 2001 1 September 2001 1 November 2001 For those patients with whom the hospital lost contact before the end of the investigation: Patient Date of surgery Date of last check-up M 1 February 2001 1 August 2003 N 1 June 2001 1 March 2002 1 September 2001 1 September 2005A medical study was carried out between 1 January 2001 and 1 January 2006, to assess the survival rates of cancer patients. The patients all underwent surgery during 2001 and then attended 3-monthly check-ups throughout the study. The following data were collected: For those patients who died during the study exact dates of death were recorded as follows: Patient Date of surgery Date of death 1 April 2001 1 August 2005 1 April 2001 1 October 2001 1 May 2001 1 March 2002 1 September 2001 1 August 2003 E 1 October 2001 1 August 2002 For those patients who survived to the end of the study: Patient Date of surgery 1 February 2001 1 March 2001 1 April 2001 1 June 2001 1 September 2001 1 September 2001 1 November 2001 For those patients with whom the hospital lost contact before the end of the investigation: Patient Date of surgery Date of last check-up M 1 February 2001 1 August 2003 N 1 June 2001 1 March 2002 1 September 2001 1 September 2005Q1. Suppose, at a given federal funds rate, there is an excess demand for reserves in the federal funds market. If the Fed wants the federal funds rate to stay at that level, then it should undertake an open market of bonds, everything else held constant. If the Fed does nothing, however, the federal funds rate will . Fill the blanks and show your argument on the graph of the federal funds market. Q2. The Fed reduces reserve requirements. Explain using graphs for the supply and demand analysis of the market for reserves, indicate what happens to the federal funds rate, borrowed reserves, and nonborrowed reserves, holding everything else constant. You need to consider all 3 cases. In addition, briefly mention about changes in monetary base and money supply.Q1. Suppose, at a given federal funds rate, there is an excess demand for reserves in the federal funds market. If the Fed wants the federal funds rate to stay at that level, then it should undertake an open market of bonds, everything else held constant. If the Fed does nothing, however, the federal funds rate will . Fill the blanks and show your argument on the graph of the federal funds market. Q2. The Fed reduces reserve requirements. Explain using graphs for the supply and demand analysis of the market for reserves, indicate what happens to the federal funds rate, borrowed reserves, and nonborrowed reserves, holding everything else constant. You need to consider all 3 cases. In addition, briefly mention about changes in monetary base and money supply.A. (300 points; 16 minutes) Old McAdams had a farm. ... And on this farm, he grows some corn. ... To grow corn, he needs a tractor. A new tractor costs $100,000. There is a very active resale market for tractors; a tractor that is one year old sells for $70,000 and a tractor that is two years old sells for $45,000. For simplicity, assume that all tractors three or more years old cannot be used to grow corn and sell for $0. These prices are expected to stay the same in the future. The variable cost of producing corn is the same regardless of whether you are using a tractor that is new, one year old or two years old. (a) Old McAdams faces an interest rate of 10%. What is the user cost of capital associated with using a new tractor for one year? What is the user cost of capital associated with using a one year old tractor for one year? What is the user cost of capital associated with using a two year old tractor for one year? (b) Old McAdams is formulating a plan for growing corn for the next three years. What is the optimal arrangement for the necessary tractor input over the three years? (For instance, should he buy a new tractor and use it for three years, or something else?) 5. (450 points; 24 minutes) Your company produces a specialized pump, that sells at a price around $60. Your factory (A) can produce these pumps with the following cost structure: the first 5000 units are produced at a constant (marginal) cost of $15 a unit, and the next 5000 units are produced at a constant (marginal) cost of $45 a unit. Factory A has a fixed cost of C (specified below), and a sunk cost of $257,000 from initial factory set-up. Demand is soaring; you expect to sell 8000 units. Because of this, you develop a new outsourcing division (B) that arranges for production of the pumps in Korea, at a constant cost of $20 per unit (including transportation and other fees), with no fixed costs. (a) Graph the marginal cost for Factory A. Graph the marginal cost for Division B. (b) If there were no fixed cost (C =0) in factory A, how much should you produce in factory A, and how much should you outsource to B? (c) Does your answer change if A's fixed cost were C = $20,000? How would your answer change if A's fixed cost were C = $45,000? (d) Consider the case above where C = $45,000. You are worried about the international situation. In particular, depending on the outcome of the November elections, you feel there is a .5 probability that your outsource costs stay at $ 20 per unit, and that there is a .5 probability that your outsource costs double to $40 per unit, for all units. (You are risk neutral.) Suppose you must decide whether to pay the $45,000 now to keep Factory A open. Should you make the investment? (Show any calculations used to arrive at your answer.) 2A. (300 points; 16 minutes) Old McAdams had a farm. ... And on this farm, he grows some corn. ... To grow corn, he needs a tractor. A new tractor costs $100,000. There is a very active resale market for tractors; a tractor that is one year old sells for $70,000 and a tractor that is two years old sells for $45,000. For simplicity, assume that all tractors three or more years old cannot be used to grow corn and sell for $0. These prices are expected to stay the same in the future. The variable cost of producing corn is the same regardless of whether you are using a tractor that is new, one year old or two years old. (a) Old McAdams faces an interest rate of 10%. What is the user cost of capital associated with using a new tractor for one year? What is the user cost of capital associated with using a one year old tractor for one year? What is the user cost of capital associated with using a two year old tractor for one year? (b) Old McAdams is formulating a plan for growing corn for the next three years. What is the optimal arrangement for the necessary tractor input over the three years? (For instance, should he buy a new tractor and use it for three years, or something else?) 5. (450 points; 24 minutes) Your company produces a specialized pump, that sells at a price around $60. Your factory (A) can produce these pumps with the following cost structure: the first 5000 units are produced at a constant (marginal) cost of $15 a unit, and the next 5000 units are produced at a constant (marginal) cost of $45 a unit. Factory A has a fixed cost of C (specified below), and a sunk cost of $257,000 from initial factory set-up. Demand is soaring; you expect to sell 8000 units. Because of this, you develop a new outsourcing division (B) that arranges for production of the pumps in Korea, at a constant cost of $20 per unit (including transportation and other fees), with no fixed costs. (a) Graph the marginal cost for Factory A. Graph the marginal cost for Division B. (b) If there were no fixed cost (C =0) in factory A, how much should you produce in factory A, and how much should you outsource to B? (c) Does your answer change if A's fixed cost were C = $20,000? How would your answer change if A's fixed cost were C = $45,000? (d) Consider the case above where C = $45,000. You are worried about the international situation. In particular, depending on the outcome of the November elections, you feel there is a .5 probability that your outsource costs stay at $ 20 per unit, and that there is a .5 probability that your outsource costs double to $40 per unit, for all units. (You are risk neutral.) Suppose you must decide whether to pay the $45,000 now to keep Factory A open. Should you make the investment? (Show any calculations used to arrive at your answer.) 2