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When Commonwealth Edison (electric utility) needs more revenues, it petitions the Illinois Commerce Commission to allow it to raise its rates. What does this tell you about the type of price elasticity of demand within this price region for Commonwealth Edison Service?
Suppose that a 20% decrease in the price of coffee leads to a 15% decrease in the quantity of coffee supplied. Compute and give the value of the price elasticity of supply. Determine if supply is price elastic, price inelastic, or unit-elastic.
Suppose a permit case like in textbook with m_1 > m_2 and the cost of reducing emissions equal to m_1/2 e^2. Suppose also that the firms must borrow to pay for permits at firm
Take a look at the labels of the clothes you wear. Are any of them made in the USA? As a nation, are we better or worse off because all of clothes are made elsewhere? Are the
Assume that hotdogs and hamburgers are substitute goods. In the competitive market for hamburgers, there is an increase in the price of hotdogs (due to a decrease in the suppl
If you were macroeconomic policymaker, how do you balance the short-run tradeoff between inflation rate and unemployment rate? Explain. What is the historical relationship bet
Social security faces a $5.3 trillion shortfall over the next 75 years, but a congressional report says the massive gap could be erased by increasing payroll taxes paid by bot
The FED is facing a problem of unemployment. What policy should be used? How would each of the tools at the FED’s disposal be used? If a student deposits a $600 tax refund and
Typically, hard economic times decrease nativism. Europeans lead the world in terms of the quantity of genetically modified (GM) foods consumed. Protectionism is where the gov
Explain the economics of the taxi medallion system. This is discussed in the text and in numerous places on the web. Why did cities start the medallion system? Do you think it
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