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When the buyer bears the bigger burden of tax, how is supply (elastic/inelastic)? Draw and show with boxes and appropriate labeling who bears which portion of taxes. When does a price ceiling become binding and what does it create? Show in the diagram.
Suppose you were having lunch with your best friend who just enrolled in an economics class. He was complaining about Explain how irrelevant class was, commenting that he saw no useful purpose for economics.
Elucidate what happen in the short run to market supply and demand curves, market price, the firm's output, the firm's profit.
Demand curve is d1, what will be the change in her revenue. If her demand curve is d2 what will be the change in her revenue.
Elucidate the production combinations society would like to choose. the boundary that divides all production combinations into attainable ones.
Describe return to an investment in a college education. How would you go about measuring it. How would you decide it is good enough to warrant investment.
Compute the point elasticity of demand at this TR-maximizing price also quantity. Does the elasticity have the expected value.
Do a discussion on the model of perfect competition also adopting strategies to gain marketplace power in competitive industries.
How much does consumption change this year in absolute dollars ($ ΔC) as a result of a $5,000 annual tax cut to your income, if the tax cut.
Suppose life is discovered on Mars and that it turns out to be quite sophisticated. In fact, perfect competition prevails everywhere on the planet. Which of the following characteristics of Martian firms are we likely to observe.
Compare the effects of the two policies, based on the models developed. Why might the United States have preferred one policy over another.
The government wants to increase real GDP demanded to $15 trillion at the given price level
You short-sell 200 shares of Tuckerton Trading Co., now selling for $50 per share. Illustrate what is your maximum possible gain ignoring transactions cost.
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