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Describe the effects of the sugar quota. In 2005, imports were limited to 5.3 billion pounds, which pushed the domestic price to 27 cents per pound. Suppose imports were expanded to 10 billion pounds.
a. What would be the new U.S. domestic price?
b. How much would consumers gain and domestic producers lose?
c. What would be the effect on deadweight loss and foreign producers?
For each level of output except zero output, compute the average variable cost (AVC), average total cost (ATC), and average fixed cost (AFC)
An investment that brings $40,000 two years from today is worth what present value in terms of today’s money with an interest rate of 25%?
To reduce her personal carbon footprint, Zooey is buying a new hybrid. She has negotiated a price of $21,900 and will trade in her old car for $2350. She will put another $850 with it and borrow the remainder at 6% interest compounded monthly for 4 y..
Calculate and graph what happens to T(taxes), C(consumption), AD(aggregate demand), GDP, and Prices if the President raises taxes by 100 billion and the MPC = .80.
Suppose that the world price of oil is roughly $60 per barrel and that the world demand and total world supply of oil equal 34 billion barrels per year (bb/yr), with a competitive supply of 20 bb/yr and 14bb/yr from OPEC. The equation for the long-ru..
Suppose each of the five sellers can supply at most one unit of the good. Elucidate the price when market quantity supplied is exactly 3.
if you deposit $1000 now, $3000 four years from now follows by five quartely deposite decreasing by $500 per quarter at an interest rate of 12% per years compounded quartely. how much will you have in your account 10 years from now?
Over the past decade medical costs have increased more rapidly than other prices. In order to illustrate how rising medical costs have affected consumer alternatives, let X represent the quantity of medical services, and let Y represent the quantity ..
John’s preferences over toothpaste (good 1) and beer (good 2) are represented by utility function u = ln x1+ x2. Prices are given by p1 and p2, and he has income of m. What fraction of his income does he spend on toothpaste?
How long will this discount change the consumer surplus and producer surplus? Will Big Top be more efficient by offering the discount to children?
Siva Nathaniel owns various plots of land in Fulton County, Georgia. He acquired the land at various times during the last 20 years. About every fourth year, Siva subdivides into lots one of the property he owns. He then has water, sewer, natural gas..
Why did rising house prices make US retail banks more willing to provide mortgages for low-income earners with poor credit histories?
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