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Suppose the market supply curve of wagons is QS = –62.5 + 0.5p2. The demand curve is QD = 325 – 2p2. Use Equation 3A.2 in Appendix 3A to determine the incidence of a small tax on consumers. ?The equation to use is dp/dt=(ds/dp)/(ds/dp)-(dD/dp)
A firm is currently producing 40 units of output. At this level of output produced: Is this firm making profits or losses? How much? Are they maximum profits? Why?
In "The Consequences of Mr. Keynes," James Buchanan and Richard Wagner argue that the "unwritten fiscal constitution" of an annual government balanced budget helped restrain the growth in government, but the Keynesian argument for a balanced budge..
Demand-Supply Analysis and the American Revolution a. Before the American Revolution, the British government required that all imports to the colonies from outside the British Empire were first shipped to England (part of the Navigation Acts). A Bost..
Two bidders are about to compete in an auction for an object. Each of them has a private value for the item that the other believes is distributed uniformly from zero to fifty. Suppose that the auction format is a first-price sealed-bid auction. Prov..
Explain why the demand for the good or service provided by the organization you work for is elastic or inelastic. How does this influence pricing decisions?
You have been asked to produce a forecast for your company's new product (bottled water). List and briefly describ four factors you would consider before giving the forecast.
Hospitals are facing unprecedented financial challenges from entrepreneurial physician initiatives that are establishing competitive, freestanding diagnostic and treatment centers, and specialty hospitals. In your opinion, what are the advantages and..
Why do we policies in place to correct for externalities that result from the use of fossil fuels but not for externalities that result from the color yellow or country music (or pick something you dislike that isn't taxed)?
Given the current state of energy use, which continues to grow exponentially in such countries as China and India, what measures can the United States and other Western countries take to produce more fuel-efficient and environmentally friendly fuels?
An outcome that can result from either a price ceiling or a price floor is:
One reason firms in monopolistic competition can charge different prices is that their products are identical 2 similar 3 differentiated 4 guaranteed. The Clayton Act prohibits price discrimination. In monopolistic competition, there is no need for..
Assume all money is held in the form of currency. Assume central bank money (H) is initially equal to $100 million. Now suppose the Fed conducts an open market purchase of government bonds equal to $10 million. Explain the effect of this action on:
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