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"At least half a dozen states and cities from Florida to Hawaii now impose $2 to $7 surcharges on car rentals. These fees can amount to as much as a 30% tax on 1day rentals."
Compute the price elasticity of demand for subway rides. If the transit authority reduces the fare back to 50 cents, what impact would you expect on the ridership? Why?
Suppose that in England 5 man-hours are required to produce each cask of wine and 5 man-hours are required to produce each bolt of cloth, whereas in Portugal 1 man-hour is required for a cask of wine and 4 man hours for a bolt of cloth. What are the ..
Explain, using appropriate diagrams, the short-run effects of cyclone Yasi on the profitability of banana growing firm and the industry (impact of any cost/price changes should be clearly illustrated and explained along with the assumption(s) you mak..
The firm ALFA is known around the world for its high-quality watches, and they sell for a unit price of $9,000. However, ALFA are seeing the emergence of Asian ALFA-copy-products in their market as an increasing problem. What will the consumers’ will..
In the debate concerning repeal of the provision allowing capital gains on assets passed on to one’s heirs to escape taxation, some have reasoned that death is not voluntary, and therefore one should not tax capital gains upon death. Evaluate and exp..
Which three key concepts drive intra-industry trade? Explain how each of these three forces justifies intra-industry trade patterns!
Some would argue that the business side drives things. Business drives employment which permits consumers to consume. Would you agree?
Mr. Agirich of Aggie Farms must choose between two alternative machinery investment programs which will perform equally. The following information is available. What are the annual gross revenues from System A in the 5th year? What is the present val..
Let the market for cigarettes be characterized by the following information: Calculate the tax revenue in the post-tax equilibrium. Calculate the change in consumer surplus due to the sales tax. Calculate the change in producer surplus due to the sal..
The average corn price received by farmers in 1950 was $1.52 and in 2014 it was $4.11. The Consumer Price Index (CPI) with a base period of 1982 through 1984 were 24.1 and 236.7 for the same years, respectively. What are the corn prices for those yea..
Floyd is now working in a job that pays $18,000 per year. He is contemplating a one-year automobile mechanics course that costs $1,000 for books and tuition. The current interest rate is 10 percent. Is it economically rational for Floyd to enroll in ..
If the slope of the yield curve increases (steepens) after a decrease in the federal funds rate:
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