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Because of the reduced use of the highway, demand in the secondary market for gaso- line falls by 30,000 gallons per year. There is a stiff tax on gasoline, one that existed prior to the new toll. Assuming that the marginal cost of producing gasoline is $1 per gallon, that these marginal costs are constant (i.e., the supply schedule is horizontal), that no externalities result from the consumption of gasoline, and that the gasoline tax adds 30 percent to the supply price, are there any additional costs or benefits due to this shift? If so, how large are they?
A young software engineer is selling the rights to a new video game he has developed. Two companies have offered him contracts. The first contract offers $10 000 at the end
In the Malthusian model, suppose that the quantity of land increases. Using diagrams, determine what e¤ects this has in the long-run steady state and explain your results.
Do gender expectations affect the family experiences of husbands and wives, and brothers and sisters? What differences have you experienced or observed?Does the family unit
Suppose that Ann and Bill both have ordinal utility functions U(h, z) = α log(h) + (1 - α) log(z), with 0 ≤ α
Suppose that a sample of 50 people is randomly selected at a shopping mall. Each person in the sample is shown a typical cigarette advertisement and is asked to estimate the
At the end of the second year the increase to their revenues again would be $140 per bicycle. Thereafter, there are no increases to their revenues. At which of the following
In this case study, you are required to analyse the economic impact of the rise of the 'shared economy 'or 'collaborative consumption' on a particular industry or market. Th
A technological revolution that lowers the cost of producing a good might at first result in a reduction in the price of the good to consumers. But a fall in price will incr
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