Solve the questions
1. Consider the market for Apple Airpods. For each of the events listed here (independent of each other). Identify which of the determinants (factors affecting demand/supply) of demand or supply are affected. Explain whether the curve will shift left or right. Draw a graph to show the effect on the price and quantity of Apple Airpods of such shift. Events: (a) COVID-19's spread across China has forced the factories to be shut for three months. (b) Kylie Jenner posts a gym selfie using Airpods causing her followers to go cray cray for thein. (c) Fox News telecasts a special associating Apple with ISIS outraging millions of American users. (d) Silicon Valley nerds figure out a new way that efficiently improves production of such Airpods. (e) The price of Beats headphones rise. (f) President Trump's delayed response to COVID-19 causes the stock market to crash reducing people's income and wealth.(d) Do you agree with the statement? Do you think the current conversation on gender is a productive one? Why or why not? Are we talking about gender too much or too little? Is anything missing from the debate? 8. Three friends are choosing a TV show to watch. Here are their preferences: Rogelio Alyssa Melissa First Choice Money Heist Schilt's Creek Tiger King Second Choice Schitt's Creek Tiger King Money Heist Third Choice Tiger King Money Heist Schill's Creek (a) If the three friends try using a Borda count to make their choice, what would happen? (b) Alyssa suggests a vote by majority rule. She proposes that first they choose between Money Heist and Schitt's Creek, and then they choose between the winner of the first vote and Tiger King. If they all vote their preferences honestly. what outcome would occur? (c) Should Rogelio agree to Alyssa's suggestion? What voting system would he prefer? (d) Melissa and Alyssa convince Rogelio to go along with Alyssa's proposal. In round one, Rogelio dishonestly says he prefers Tiger King over Money Heist. Why might he do this? 9. In the episode, The One with the Inappropriate Sister, Phoebe is trying to collect donations for Christmas. She has the chance to set up her donation booth along a 1-mile route near the big Macy's on Herald Square. There's another volunteer. Phoebe's twin-sister, Ursula who wants to set up her booth on the same block. The volunteers are deciding where to locate their booths along a 1-mile block. The crowd is uniformly located along the block, and each person walking along the block donates exactly $1 per day to the nearest stand. Both Phoebe and Ursula want the maximum number of donors for their respective booths. (a) Where along the block will the two volunteers locate? Why? (b) Why might a political party in a two-party system choose not to move toward the median voter?The marginal cost of production in each country is constant at MC = 20. Part 1. Suppose that countries are not allowed to submit bids to the World Cup Committee. a) What are the profits generated in each of the three countries? b) Which country will the World Cup Committee choose to host? part 2. Suppose now that countries are allowed to submit bids to the World Cup Committee. a) What is the highest amount that each country is willing to bid? (Assume that any value is derived from consumer surplus.) b) Which country will the World Cup Committee choose to host? c) What does the winning country bid in equilibrium? d) What is the profit plus bid for the World Cup Committee? e) What is the consumer surplus minus bid for the winning country? Part 3. Suppose that Russia already has sufficient stadium capacity, but Spain and Netherlands must each spend 300 on stadium building in addition to any bid they submit. a) What is the highest amount that each country is willing to bid? b) Which country will the World Cup Committee choose to host? c) What does the winning country bid in equilibrium? d) What is the profit plus bid for the World Cup Committee? e) What is the consumer surplus minus bid for the winning country?l5. IS-LM 1. Suppose that C = 0.5(Y T). I = 101} moor. T = 100, and f: = 200. Derive the IS curve using the Keynesian cross model. 2. Suppose that P z 1. Mfr = 200. [MIPF = Y lr. Derive the LM curve from the money' market equilibrium. 3. Draw the IS and LM curves in the same figure. Solve for the equilibrium income ['1'] and the intermt rate (r). 44. Suppose the government expenditure (If?) increased to 35$. How does this change the equilibrium income {Y} and the interest rate [r]? Does this shift the IS curve or the LM curve? In which direction? 5. Now suppose that the government expenditure f? remains at the original level [200) but the money supply {M5} increases to 350 from 200. Hovv does this change the equilibrium income {Y} and the interest rate (r)? Does this shift the IS curve or the LM curve? In which direction
