1. ECO 550 Week 5 Chapter Questions
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http://homeworkfox.com/tutorials/economics/4274/eco-550-
week-5-chapter-questions/
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?