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Consider a market with a demand curve of P=10-Q and a supply curve of P=Q. Before the imposition of a tax, equilibrium quantity is 5, and equilibrium price is $5 (verify this). If a tax of $5 per unit is placed on this market, quantity traded falls to 2.5 units. Calculate the deadweight loss created by the imposition of this tax. Hint: a carefully drawn diagram will help you a lot.
Probabilities of A and B performing successfully for 1,500 times are .96 and .92, respectively, and are independent. What is probability that product will operate properly 1,500 or more times.
Analyze a situation in which both parties entering into a contract could benefit, economically or otherwise, from slightly ambiguous language contained in the contract.
Draw their budget set (the combination of housing and other goods that they can afford) in housing-other goods space
abc computer company has a 20000000 factory in silicon valley. during the current year abc builds 2000000 worth of
Given the demand curve P= 2,000 – 2Q and marginal costs of MC = 1,100 + 2Q, the firm’s profit will maximize at equilibrium price and output of: Based on the demand and cost function in previous question, in a two-part tariff pricing strategy, what is..
Explain how, with trade, Nebraska can wind up with 40 million bushels of wheat and 120 bushels of corn while Iowa can wind up with 40 million bushels of corn and 120 million bushels of wheat.
Illustrate if the table represents the demand faced by a monopoly firm, then what is that firm's marginal revenue as it increases output from 1300 units to 2200 units.
Co9mpute the percentage change in the Shares of Household Income of Quintiles between 1968 and 2008. Notice the dates are in reverse chronological order. Why do you think it has changed in the manner it has.
Graph the Demand facing your situation. Note that this requires information from the Supply Determinant analysis before deciding how to draw the curve(s), as you may need a separate MR curve.
q1. soft selling and adverse selection soft selling occurs when a buyer is skeptical of the quality or usefulness of a
q1. show how each of the following would initially affect a banks assets and liabilities.a. someone makes a 10000
Decide on the next steps based on the events that took place. What makes this next step the best decision?
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