Suppose the European Union (EU) is investigating a proposed merger between two of the largest distillers of premium Scotch liquor. Based on some economists’ definition of the relevant market, the two firms proposing to merge enjoyed a combined market share of about two-thirds, while another firm essentially controlled the remaining share of the market. Additionally, suppose that the (wholesale) market elasticity of demand for Scotch liquor is -1.4 and that it costs $16.50 to produce and distribute each liter of Scotch.

Based only on these data, provide quantitative estimates of the likely pre- and postmerger prices in the wholesale market for premium Scotch liquor.

I need a response with in 15 minutes please.

 

Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"

I’m being told to discuss interest rates from 1980 to 1989 in relation to:

1) inflation

2) investment

3) foreign trade

4) gdp

I know that interest rates in the 80s were very high, but I don’t know how that relates to the four macroeconomic indicators my professor wants me to discuss. I’ve read that interest rates were raised to stop rise of inflation, but it’s not cited, so I don’t understand why high interest rates to stop inflation. I also read that interest rates were driven up which appreciated the US dollar, but again, it’s not cited, so I don’t understand why.

If there is any way for you to explain this to me in a “macroeconomics for dummies” way, please do, otherwsie, could you advise a resource that can help me find out how interest rates from 1980-1989 impacted the four indicators?

 

Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"