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To encourage energy efficiency of homes, government offers tax credits for families that spend money to improve energy efficiency of their homes. Use a market model (graph) for home insulation products to show how the tax credit will influence the equilibrium price and output.
The Commerce Department is considering lifting the ban on the import of Brazilian oranges (the world’s largest producer of oranges) into the United States. In your explanation, be sure to distinguish between a change in demand and a change in quantit..
I know that the answer will be somehow related to the amount of marginal sales per day, but dont know how exactly to determine the allocation.
If lenders expect a higher rate of inflation, then
Find the Nash Equilibrium of the game and explain why your result is the equilibrium. If the Nash Equilibrium the best outcome for the game? If not, explain how this outcome can be improved.
Suppose that rice is pays out $1000 per hectare while quinoa also pays out $1000 per hectare if the rainy season is short. If the rainy season is long, rice pays out $400 per hectare while quinoa also pays out $400 per hectare. In this scenario, to w..
A firm faces the demand function Qd = 60− (½)P and the cost function C = 11Q2 +5. What is the optimal quantity that a price-taking (and profit maximizing) firm should supply? What is the profit when quantity produced is optimal? Construct a graph sho..
Direct investment inflows by foreigners into the United States have been sizable in recent years. How might this net inward movement of capital affect the level and pattern of U.S. trade according to the Heckscher-Ohlin model? The level of world outp..
The economy is starting from a point of disequilibrium as there is a recessionary gap. Potential GDP is $600 billion and the recessionary gap is $50 billion. An economic shock then hits this economy and there is a sudden drop in the value of the Cana..
Explain why you cannot primarily rely on budgets or expenditure documents to ascertain the costs of a project. In other words, why is it inappropriate to use budgets for estimating costs?
Elucidate how does the Demand curve faced by a monopolist differ from the Demand curve faced by a perfectly competitive firm.
For the purpose of these exercises, let the firm's profits be given by P(x) = 20x - x^2, and let damages be given by D(x) = 2x^2. Under these situations find: Level of output x, Producer surplus and net damages. A regulator imposes a unit Pigovian ta..
At the end of a projects life, an asset will be disposed. The projects cash flow statement will show a small gains tax credit (positive cash flow). Which of these statements must be true?
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