Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
An interesting application of supply and demand to addictive substances compares alternative techniques for supply restriction. For this problem, assume that the demand for addictive substances is inelastic.
a. One approach (used today for heroin and cocaine and for alcohol during Prohibition) is to reduce supply at the nation's borders. Show how this raises price and increases the total income of the suppliers in the drug industry.
b. An alternative approach (followed today for tobacco and alcohol) is to tax the goods heavily. Using the tax apparatus developed in Chapter 4, show how this reduces the total income of the suppliers in the drug industry.
c. Comment on the difference between the two approaches.
Inspect your graph to see that it displays diminishing MP.
Year Actual 5yr move 3yr exponential exponential demand average avg. smoothing smoothing W=0.9 W=0.3 2000 800 xxxxx xxxxx xxxxx xxxxx 2001 925 xxxxx xxxxx 2002 900 xxxxx xxxxx 2003 1025 xxxxx 2004 1150 xxxxx 2005 1160 2006 1200 2007 1150 2008 1..
Suppose the price elasticity of demand for cocaine is -0.5. What will happen to the equilibrium price, quantity and total revenue from cocaine sales if the government succeeds in its efforts to reduce demand? What is likely to happen to the incent..
In the example given in Table 6.1, suppose Neal experiences a small increase in income. Will he allocate it to snowboarding or jazz?
Suppose that the market price for a bottle of vitamins is $2.50 and that at that price the total market quantity demanded is 75,000,000 bottles. How many firms will there be in this industry d.Suppose that, instead, the market quantity demanded at ..
Joe's t-shirt shop is located in a small college town. the majority of business is custom t shirts for university book stores. as a sideline, they also sell t-shirts locally. the local demand is Q=200-5P. calculate output, price, and profit under ..
Go to the Bureau of Economic Analysis at this Web site, and look up the latest new release for real GDP. Address the following questions after reading the latest release:
Now, suppose that initially z=2 and the economy is in the steady state you calculated in part a. . Then suppose that z falls to 1.8 permanently. What is the new steady state? Determine capital per worker znd output per worker in each of the first ..
During 2003, the economy began to stop worrying that inflation was a problem. Instead, the worry was about deflation, a decline in the price level. Assume that the fed decided to hold money supply constant. What impact will deflation have on inter..
What is the meaning of the Coase theorem can't understand how it leads to efficient allocation of resources, any tutor who can explain
without a market for pollution rights, dumping pollutants into the air or water is cost less; in the presence of the right to buy and sell pollution rights, dumping pollutants creates an opportunity cost for the polluter." What is the significance..
A thin-walled beam of uniform thickness has the cross section shown. Determine the dimension b for which the shear center O of the cross section is located at the point indicated.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd