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The demand curve for two liter bottles of soda is given by QD=4000-300P, and the supply curve is given by QS=1300P. In an effort to reduce soda consumption, the government has placed a tax of $4 per two-liter bottle that is added to the consumer's bill at the checkout.
A. what is the reduction in total costs due to the tax?
B. what is the deadweight loss of this tax?
Assume that the free trade unit price of a lamp is $200 and unit cost of an input for a lamp is $100. Given this information about lamp production in a country, calculate the effective rate of protection (ERP) afforded to the lamp industry by a 12% t..
There were 13,249 weddings in Springs City last year. According to state records, notaries public performed 17% of the weddings. How many weddings were not performed by notaries public?
Suppose that price of capital is $1 and price of labor is $2 and total outlay is $16. Write the equation for the iso-cost line and plot it on the same graph with the iso-quants.
If you were responsible for setting the NAAQS for lead, what key determinants would you consider if the standard were established to meet the efficiency criterion. Be sure to itemize separately the benefits and costs associated with your decision.
what way the U.S trucking industry exemplified the capture theory hypothesis of government regulation prior to the capture theory hypothesis of government regulation prior to the passage of the Motor Carrier Act of 1980
Comparing the situation of a nominal interest rate of 10 percent and an inflation rate of 9 percent with a nominal interest rate of 6 percent and inflation rate of 2 percent, consumers would borrow more in which situation?
Write down an expression for the profit GBC will make if it uses L units of labor at $1 an hour and sells the resulting output of cookies at $p a cookie.
currently there is an incumbent monopoly in a market. a potential entrant may enter. the incumbent can spend x dollars
Explain how the following events will affect the demand for money according to the portfolio theories of money? demand: The economy experiences a business cycle contraction. Brokerage fees rise?, making bond transactions more expensive. Explain how t..
A market basket of goods and services that costs $100.00 in the United States costs 800 pesos in Mexico, and the current nominal exchange rate is 10 pesos per U.S. dollars. The real exchange rate now if today’s price index in both countries is 100?
Briefly describe the origin and growth of government-provided pensions beginning with Germany in 1881 and attempts to establish a federal pension in the U.S. prior to 1935
There is debate going on concerning the latest version of Apple i-phone between Apple and the US federal government. A US magistrate in California has ordered Apple to unlock the phone of a deceased terrorist who killed several people. Ethically, do..
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