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There is a debate about whether sterile hypodermic needles should be passed out free of charge in cities with high drug use. Proponents argue that doing so will reduce the incidence of diseases, such as HIV/AIDS, that are often spread by needle sharing among drug users. Opponents believe that doing so will encourage more drug use by reducing the risks of this behavior. As an economist asked to assess the policy, you must know the following: (i) how responsive the spread of diseases like HIV/AIDS is to the price of sterile needles and (ii) how responsive drug use is to the price of sterile needles. Assuming that you know these two things, use the concepts of price elasticity of demand for sterile needles and the cross-price elasticity between drugs and sterile needles to answer the following questions.
a. In what circumstances do you believe this is a beneficial policy?
b. In what circumstances do you believe this is a bad policy?
Describe how market structure affects market performance and conduct. Recognize three types of government regulation that aid to enhance market performance
Use the Porter's five forces framework to explain this pattern. Discuss possible profit-maximizing business strategies that artists, record companies, and retailers may wish to pursue.
Suppose the demand for a product is given by P = 40 4Q. Also, the supply is given by P = 10 + Q. What is the price elasticity of demand at the equilibrium price?
Cypress River Landscape Supply is a large wholesale supplier of landscaping materials in Georgia.Cypress River’s sales vary seasonally.
Assume that both magazines are owned by the same publishing company that maximizes the combined profits of the magazines. Will the company make the same choice as in the noncooperative game (i.e., owned by different publishing companies)?
1. Evaluate Time Warner Inc's working capital position.
How the Balance Sheet for Bank Z would look like after it loans out its Money to Mr. Chansa and suppose Mr. Chansa Deposit his Money into Bank-B, How would the T- Balance sheet look like for Bank- B
video world operates a retail store that rents movie videos. for each of the last 10 years, Video World has consistently earned profits exceeding P250000 per month in rent for its building, but it uses only 50 percent
Explain the circumstances in which a monopolist may encounter a free rider problem and determine the senses in which a perfectly-discriminating monopolist is efficient or inefficient.
As prices increase, should health economists advocate giving something up (opportunity costs/trade-offs)? As the quantity of health services provided goes up, does the benefit of each additional unit of service become smaller (marginal analysis)?
Movie theaters often offer decreased rates for children under ten. This suggests that tht demand for adult admission is
Several decades in the physician services market- the level of competition has increased and economies of scale have increased.
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