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A tariff is simply a tax on imports. Use our model of excise tax (with diagram) to explain why domestic firms request that tariffs be imposed. Who gains and woo loses due to tariff? (consider both the domestic and the foreign country in your answer)
Exchange and markets, Demand supply and market equilibrium
What is opportunity cost? Explain with the help of an example, why assumption of constant opportunity cost is very unrealistic? Explain law of demand with the help of a demand schedule and demand curve.
Problem - Income Elasticity of Demand, Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5
Explain the influence that transferable property rights versus non-transferable property rights, has on individual decision making.
Assume you hire a furloughed Wall Street analyst to aid you examine your production process, and she uses your historical cost records to estimate that your total cost function is C(Q) = 100 + 2Q + 3.5Q2. Using this equation, answer the following ..
Price Discrimination: Assume that United Airlines knows that it faces the following demand equations and corresponding marginal revenue equations for its (one-way) SFO to Las Vegas route
Assume that Florida migrant workers are effectively unionized. What will be the impact of unionization on?
Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.
The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.
Discuss how a change in price affects total expenditure by filling in each cell with resulting change in total expenditure.
Explain how a change in investment can have big impact on GDp causing nationwide slump. Recall that investment is "small' relative to the whole economy.
Suppose a frost kills a large portion of an orange crop, with a resulting higher price of oranges. It has been said that such an increase in price benefits no one since it cannot elicit a supply response; the higher price, it is said, simply "line..
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