Micro, Microeconomics

a. Suppose the demand for saline solution is perfectly inelastic for contact lens wearers. If the government imposes a tax on saline solution, what occurs? Be sure to tell what happens to the price paid by the buyers and discuss the incidence of the tax.
b. If income tax rates on labor income are decreased, what is the effect on the labor supply and the labor supply curve? What is the effect on the equilibrium quantity of labor hired?



Posted Date: 5/2/2012 4:37:20 PM | Location : United States







Related Discussions:- Micro, Assignment Help, Ask Question on Micro, Get Answer, Expert's Help, Micro Discussions

Write discussion on Micro
Your posts are moderated
Related Questions
Problem 1 (a) Explain the evolution of exchange rate system in Mauritius. (b) According to you, what factors determine exchange rates in the long run? Problem 2 "Inf


why is elasticity important for beachfronf properties

Direction of Trade: It is indicative of the structure and level of economic development. As a country develops and its trade gets diversified, it has to seek new outlets for i

Budget Constraints   * The Budget Line - The budget line indicates all the combinations of 2 commodities for which total money spent equals the total income. * The Budget

Price: The price factor is another important variable to be included in demand analysis. Here one has to consider the prices of the product and also its substitute and complement

Consider an upstream firm in Russia that mines iron ore at a total cost of $15 q , where q is the number of tons of ore. This upstream firm then ships ore to Germany for processi

Discretionary Fiscal Policy: Some government taxing and spending programs can be adjusted by government in response to changing economic circumstances. These discretionary measures

Your company has a product that it is interested in marketing in a foreign country. Using one of the following Websites, click on a country of your choice to learn about Etiquette,

when the demand function is 2Q-24+3P=0,find the marginal revenue when Q=3.