February 11, 2020 Popeye’s chicken sandwich sends sales through the roof. Questions According to Popeye’s CEO Jose Cil, how did consumer’s respond to Popeye’s menu when they purchased the new chicken sandwich? How do you know that the chicken sandwich market is monopolistic competition? Why does Popeye’s advertise its chicken sandwich? What is the effect … Continue reading Popeye’s Chicken Sandwich Sales Soar
Month: February 2020
U.S. Trade Deficit Shrinks
February 11, 2020 US trade deficit shrinks in 2019 Questions What were the changes in U.S. exports and U.S. imports that led to the trade deficit shrinking in 2019? Where are imports and exports recorded in the balance of payments accounts? Everything else remaining the same, what is the effect of a smaller trade deficit … Continue reading U.S. Trade Deficit Shrinks
Lash-Extensions Squeeze Out Mascara
February 9, 2020 Do you want to be “Instagram ready”? If you do, then you might be part of the growing number who are leaving the mascara market and moving to a low-maintenance and no-hassle look. CNN Business reports that while mascara is becoming less popular, the lash-extension market is booming. What’s happening? We can … Continue reading Lash-Extensions Squeeze Out Mascara
Video Streaming Competition Ramps Up
February 8, 2020 Want to stream a movie? You’ve got lots of choices—Netflix, Apple TV, Disney+, Amazon Prime, and Hulu to name a few. And these streaming services constantly offer you new programming. CNN Business describes the growth of content in the streaming market. Why is this growth occurring? Why aren’t firms content to keep … Continue reading Video Streaming Competition Ramps Up
Why is Tuition at U.S. Colleges so High?
Feb 7, 2020 Why is tuition at U.S. colleges so high? And what’s happening to enrollment? You’re reading this Blog, so most likely you’re a college student and you would like to know the answers. The scatter diagram shows data on college enrollments and tuition/fees/room/board in public colleges from 2000 through 2016. You can see … Continue reading Why is Tuition at U.S. Colleges so High?
Kudlow to Unveil ‘Tax Cuts 2.0’ in 2020
February 4, 2020 Kudlow says ‘tax cuts 2.0’ will be unveiled later this year Questions Who is Larry Kudlow? If the United States is at full employment, is the government budget deficit cyclical or structural? Explain. Everything else remaining the same, how will further tax cuts change the government budget deficit? What is the effect … Continue reading Kudlow to Unveil ‘Tax Cuts 2.0’ in 2020
Super Bowl Commercials
February 4, 2020 Watch all the Super Bowl commercials Questions Name three firms that advertised in Super Bowl LIV. What types of firm advertise? Why? Is advertising a fixed cost or a variable cost? Explain. Does advertising always increase average total cost? Why or why not? Draw a diagram to illustrate your answer to #4.
Fourth-quarter GDP Up 2.1%
February 4, 2020 Fourth-quarter GDP rose only 2.1% Questions According to the news article, did investment and government expenditure increase or decrease during the fourth quarter of 2019? The news article tells us that in 2019, the government budget deficit exceeded $1 trillion. What is the effect of this deficit in the loanable funds market? … Continue reading Fourth-quarter GDP Up 2.1%
New Coke on Shelves
February 4, 2020 There’s a new kind of Coke on shelves. Questions What is the difference between the Coke energy drinks in the United States and in the rest of the world? Is Coca-Cola moving into the energy drink market to give its fans “more options”? Explain. Coca-Cola plans to advertise its new energy drinks … Continue reading New Coke on Shelves
U.S. Consumer Prices Gain Slightly
February 3, 2020 US consumer prices gain slightly. Questions What was the change in the CPI in the 12 months through December 2019? Given your answer to #1, and the information that the CPI in December 2018 was 251.2, what is the CPI in December 2019? Why is the inflation rate calculated using the PCE … Continue reading U.S. Consumer Prices Gain Slightly