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When the price of a product increases or decreases, the quantity of it demand shifts along the demand curve . how will the consumer react? (the income effect, the substitution effect)
Suppose that the pre-tax price of gasoline is $1 per gallon. A tax of $0.50 is imposed and is paid by consumers to the government. What must the gross price of gasoline be after the tax so that the consumer tax burden is equal to the producer tax bur..
Conduct a market analysis for your chosen company and develop a report that will be given to the senior management of your chosen company. The objective is to develop a Product Innovation Charter (PIC). A PIC is a written document, prepared to chart ..
An engineer estimates that the annual toll revenue from a newly proposed highway construction over 20 years will increase at a rate of 4%. The revenue for the first year is $2,000,000. What is the present value of the toll revenue if the state can ea..
A certain college graduate, Sallie Evans, has $24,000 in student - loan debt at the end of her college career. The interest rate on this debt is 0.75% per month. If monthly payments on this loan are $432.61, how many months will it take for Sallie to..
Reston Aviation has been awarded a government contract that requires the fabrication of an unusually large helicopter blade spar. Barbara Matthews, Reston’s President, is faced with two alternatives: Assessment of Risk for Fabrication of Helicopter S..
Suppose you are assigned the task of drafting a law to impose a tax on smoke emissions. What provisions would you put into the law? How would you decide the size of the tax? What would you do about smoke emitted by a municipal electricity plant?
In the country of Mainia, GDP consists of cranberries and maple syrup. In 2000, 50 units of cranberries are sold at $10 per unit, and 100 units of maple syrup are sold at $5 per unit. If the price of cranberries was $5 per unit and the price of maple..
Use economics to compare three ways to reduce the demand for heroin: the substitution of another, less dangerous, and less debilitating drug, such as methadone for heroin, to registered addicts; If expenditures on preventing crime equal $200 billion ..
Explain and illustrate graphically the effect of the following on the monetary base and the level of reserves. Central bank purchases $30 million of government securities for Chase Bank. The Fed purchases from the public $3 million of government bond..
In the short- run, a perfectly competitive firm produces output using capital services [K] (a fixed input) and labor services [L] (a variable input). At its profit-maximizing level of output the marginal product of labor is equal to the average produ..
Compute the price elasticity of demand when price changes from $100 to $80 per pair using the average formular.
According to Trabant and Uhlig (2009), the Laffer curve for consumption has no peak. As far as I can make out, the argument is based on the fact that money extracted by taxing consumption ends up back with consumers and then gets taxed again. However..
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