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Since 1979, low income recipients have been given food stamps without charge. However before 1979, people bought food stamps at a subsidized rate. For example, to get $1 worth of food stamps a household paid about 20? (the exact amount varied by household characteristics and other factors). Show the budget constraint facing an individual if that individual is allowed to buy up to $100 per month in food stamps at 20? per each $1 coupon. Compare this constraint to the original budget constraint (original income is Y) with no assistance and the budget constraint if the individual receives $100 of food stamps for free.
A private golf club has two types of members. Serious golfers each have an individual demand curve given by = 35 ? .1??, while casual golfers each have an individual demand curve given by ?? = 10 ? .2??. Here, P is the price per round of golf and Q i..
If consumers perceive several goods to be homogeneous, they believe the goods to be,
If the incremental federal income tax rate is 34% and the incremental state income tax rate is 6%, what is the effective combined income tax rate (t)? if the satiate income taxes are 12% of taxable income, what now is the value of t?
In February 2015, Wal-Mart announced that it would increase the pay rate for all its lowest paid workers. Is this wage increase a growth in fixed costs or variable costs? Would it be affected by output? If Wal-Mart's sales drop off, how might the sto..
Using the Production function defined in (1) derive how much it would cost the firm to produce a particular level of production y. That is, find the cost function C(w, y). The video defines the Marginal Cost function of the firm (MC(w,y)) as how much..
q.your firm is considering the purchase of an old office building with an estimated remaining service life of 25 years.
q1. given production function fxy cxabyb-awhere a b c are positive and bgtaa. discuss the returns to scale marginal
The name of the government agency that insures commercial bank deposits is the:
Historical data suggests that in the athletic shoe industry, the price elasticity for shoes is approximately -0.67. Explain what price elasticity is, and how to interpret the stated elasticity for athletic shoes of -0.67. What effect would you expect..
An asset with a first cost of $240,000 three years ago is sold for $285,000. The asset was depreciated by the MACRS method and has a book value of $69,120 at the time of sale. Determine the amount of the capital gain, if any, and the amount of the de..
In an auction, potential buyers compete for a good by submitting bids. Adam Galinsky, a social psychologist at Northwestern University, compared eBay auctions in which the same good was sold.
q1. q10000-1000p0.05pop0.610.3awhere q is quantity p is cost pop is population i is disposable income per capita and
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