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What would be the effect of a neutral carbon tax (tax gasoline and give the tax revenue back to consumers, split evenly to all Americans) on the arugula market and the Bud Light (not the best quality of beers, so they say) market? How would P & Q be affected?
Your firm's research department has estimated the elasticity of demand for toys to be -0.7. As the manager of the firm, determine the impact of an 8% increase in toy prices on your total revenues.
Suppose the call money rate is 6.8 percent, and you pay a spread of 1.9 percent over that. You buy 600 shares at $78 per share with an initial margin of 25 percent. One year later, the stock is selling for $84 per share, and you close out your positi..
If you receive an inheritance of $10,000 today, how long do you have to invest it at 8% per year to be able to withdraw $2,000 every year forever? Assume the 8% per year is a return that you can depend on forever.
Which social media tools are used by the Google? How good the Google is in leveraging the various social media tools?
In each of the situations described, state which component of aggregate demand (C, I, G, or NX) of the United States is affected and whether aggregate demand will increase or decrease as a result. The recent hike in the federal-funds rate target incr..
Suppose the demand and supply functions of a good are specified as follows: QD= 600-2p and QS= -200 + 3P. Equilibrium price and quantity must be:
Suppose that a conservative political alliance succeeds in 2020 to change the current floating exchange rate regime in the U.S. into a fixed exchange rate regime. Assume that the fixed exchange rate is announced to be equal to the current market equi..
When comparing subsidy systems with cash transfers, it is crucial to consider whether it is the general welfare of the recipient or his consumption of the specified good which is of prime importance. Discuss.
Compare the effects of the drought under the tariff with those under the quota
An IT company called Zucchini has the following production function: y=16L^(1/4) K^(1/4). (A) Using the following two conditions for profit-maximizing in the long-run, show that the long-run demand functions for input labour is L=(4p/r)^(1/2) (4p/w)^..
A company with 100 employees decides to offer its employees medical insurance administered by a major health company, but funded totally by the employer—i.e., it self-insurance. The CEO is furious with his HR director who told him that, given their h..
Suppose the growth rate of the firm's profit is 5 percent, the interest rate is 6 percent, and the current profits of the firm are $80 million. What is the value of the firm?
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