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Suppose demand and supply are given by
Qxd =7- 1/2Px and
Qxs =1/4Px-1/2
• Determine the equilibrium price and quantity
• Suppose a $6 excise tax is imposed on the good.
Determine the new equilibrium price and quantity
• How much tax revenue does the government earn with $6 tax.
If at an interest rate of 7 percent, planned investment is $2 trillion, government spending is $3 trillion, net taxes are $2.8 trillion, and household saving is $2.2 trillion, what is the quantity of funds demanded at an interest rate of 7 percent..
Compare the effects of these two policies in terms of their implications for the current account.
Suppose now that the government reduces (t) and increases (t') so that the government budget constraint continues to hold. What will be the effects on an individual con-sumer's consumptionin present
The licorice industry is competitive. Each firm produes 2 million strings of licorice every year. Total cost of strings have an average.
Assume that the returns of these stocks are independent of each other. Find the mean and standard deviation of the total amount that this investor earns in one year from these four investments.
What was the accounting profit for the new business. What was the economic profit or loss. Explain your calculations for both questions.
Analyze a situation in which both parties entering into a contract could benefit, economically or otherwise, from slightly ambiguous language contained in the contract.
Who has the comparative advantage in what product. Once they specialize, how much does output increase. What are the terms of trade if the United States trades 1 can of soda for 5 units of clothing.
The People's Bank of China, the country's central bank, raised the reserve requirements of its top commercial banks to put a squeeze on the credit market
Identify your fixed and variable costs at your fast food restaurant, and explain the changes to each of these costs, given the increased demand.
What is the social optimum quantity and price. Calculate the total surplus in the market equilibrium, at the social optimum and with the tax.
Calculate price, quantity and social surplus for the initial state and each policy.
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