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The vertical intercept for the demand curve is at 500 and the vertical intercept for the supply curve is at 100. Initially, there is no tax on the market, and the airplane sells a quantity of 40 units at a price of $420. But at some point, because both production of and using the plane in play causes air pollution, the government puts a tax on the market. The tax is $80 per airplane, and with the tax the price received by sellers becomes $356, with a quantity of 32 units sold. Calculate producer surplus for this market after the tax is applied.
Given the market for wheat in equilibrium, assume that the government imposes a price floor on wheat. Explain what happens to the market for wheat as a result of this action? Draw and graph to fully illustrate the situation.
What bank regulations are designed to reduce moral hazard problems created by deposit insurance? Will they completely eliminate the moral hazard problem? What are the costs and benefits of a too-big-to-fail policy?
Management and a labor union are bargaining over how much of a $50 surplus to give to the union. The $50 is divisible up to one cent. The players have one-shot to reach an agreement.
China's entry into the World Trade Organization (WTO) in 2001 created more competition between local and foreign firms, and also provided China greater access to the market for exports. What impact do you think the import quota reduction likely had o..
Compute the effective annual rates for the following:
Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs of $10 million per year and a variable cost of $3 per bag no matter how many bags are produced. If you wished to regula..
q1 in centipede there are two players. player 1 moves first player 2 moves second. after at most two moves the game
Suppose there are two type of customers for a comic book store. The owner has conducted interviews and concluded that there are around 50 customers each with a demand curve P = 20 - 5Q and another 20 each with demand curve P = 20 - Q, where P is the ..
Using the sum-of-years digit method of depreciation, find the amount of depreciation to be charged off each year on an RV Camper purchased byan Account in Firm. The RV Camper has a cost of $95,000, and estimated life of 5 years, and a trade-in/scrap ..
According to the BLS, the CPI rose 3.8% in August of this year compared to a year earlier. Food prices rose 4.6% and clothing prices were up 4.2%, while new car prices rose 3.8%, and medical care was up 3.2%. What percentage change in the CPI up unti..
Is it a local, regional or national monopoly. What are some of the Barriers to Entry into this industry.
The united states exports a substantial amount of scrap iron and steel to Japan and other countries. Explain Why do some US users of scrap iron and steel support a prohibtion on these exports
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