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An individual consumes a positive amount of good X and good Y. As a result of an excise tax on good Y, its price doubles. At her new equilibrium, the individual consumes the same amount of good X as before.
(a) ?With good X on the X-axis and good Y on the Y-axis, illustrate the income and substitution effects of this change in the price of good Y. What kind of good is Y?(b) ?What can you say about the price elasticity of demand for good Y??(c) ?What can you say about the cross price elasticity of demand for good X with respect to the price of good Y?
Explain what the functions of the Federal Reserve are. Research for a map of the 12 Federal Reserve District Banks. Include the map and explain what cities each district bank
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You own a pizza shop and you use both labor and capital to make your pizzas. Currently the marginal product of labor is 5 pizzas per hour, while the marginal product of you ca
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How would decreasing an import tariff on a good affect producer surplus in a nation that imports that good? In international trade, what is a tariff? What will occur if a nati
plot the total, average, and marginal functions for both revenue and cost. [Note: Use a two-part graph similar to Figure 2.1 that places the total function in the upper part a
A mandatory health insurance plan costs $4,000. One worker earns $24,500 in employment income and $500 in investment income. Another worker earns $48,000 in employment income
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