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Imagine a world with two individuals, a rich one denoted by R, and a poor one denoted by P. Both individuals consume gas, and their demands are given by QR = 100 - 0.5P and QP = 60-P respectively, where P is the price of gas, and QR and QP are the quantities consumed. Imagine the price of gas is $40. The government wants to introduce a carbon tax of $10 per units of gas consumed, but is concerned about the impact it will have on the poor individual. (a) Is it possible to collect new tax revenue, and at the same time guarantee that the poor individual will not be made worse-o? by the new carbon tax? Be speci?c, and make sure you calculate the ?nal tax revenue. Assume the government is able to observe who is poor and who is rich. (b) So far, we have assumed that the supply of gas was perfectly elastic. Imagine that the supply was no longer perfectly elastic, would it be easier or harder to guarantee that the poor individual is not made worse-o? by the new carbon tax? Be speci?c; using a graph may be helpful.
a manufacturer is considering purchasing equipment, which will have the following financial effects: Year Disbursements Receipts If money is worth 6%, should he invest in the equipment?
The two loops in the circular-flow diagram represent the flow
Canadian firms that buy machinery and equipment from US suppliers c.cross border shoppers from Canada who shop for goods in the US retired Canadians who live in Arizona and Florida during the winter months
Suppose the autonomous planned spending increases by 800 billion so that A?p = 5,800. Explain if this increase is the result of increases willingness of financial market firms to lend to consumers and business firms ..
ist one industry that is an example of aperfectly competitve industry and one that is an example of amonopoly. Explain and discuss why these industries are examples of perfect competition and a monopoly using the characterstics of these industries..
Suppose that an industry cartel wishes to keep a new entrant out of an industry. Cartel members can conduct "predatory pricing", where the cartel lowers its price until the entrant leaves, after which it returns it price to the cartel's optimal (m..
Few states in the U.S. permit citizens to openly carry handguns. People can save themselves in the case of robberies or harm by using these guns.
Explain and show graphically how this market would be affected if there is an increase in the number of dairy farmers that produce hormone free milk and at the same time south african consumers chose to be more healthy?
Do you have to conduct a SWOTT Analysis to have an effectivestrategic plan What are the primary internal organization considerations for the development of a strategicplan Which consideration is the most important
This line is aimed at the low end of the market and isn't constructed on a wheel base. Writing instruments. This line includes mechanical pens and pencils which are sold to the middle-market segment between the low-end products such as Bic and h..
Suppose the Clean springs water company has a monopoly on bottled water sales in California. If the price of tap water increases, what is the change in Clean springs' profit maximizing levels of output, price, and profit
what action has our government taken in order to provide this good and service in an equitable fashion what are the alternatives to government intervention 3. what has been the end result of government intervention
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