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Suppose demand and supply are given by
Qxd =7- 1/2Px and
• Determine the equilibrium price and quantity
• Suppose a $6 excise tax is imposed on the good.
Determine the new equilibrium price and quantity
• How much tax revenue does the government earn with $6 tax.
Why do proponents of active policy recommend government intervention to close an expansionary gap. Some economists argue that only unanticipated increases in the money.
Consumers buy from the lowest price firm, and the highest price firm sells nothing. If the firms pick the same price, they split the market demand equally.
Suppose at the current level of labor used, the MRP = $100 and the MFC = $50. Elucidate the maximize profits
Assume that during the last month of the tenth year of ownership, the property in Problem 2 is sold for 1,500,000. Assume also that the seller incurs transaction costs equalling 6 % of the sales price.
Distinguish between the resources market and the product market in the circular flow model.
Avoid having developed economies regress to a Smoot-Hawley type of isolationism or protectionism to avoid job losses in import-competing sectors.
The Australian government administers two programs that affect the market for cigarettes
All farmers in Trivialand are self - employed and sell all of their wares to Super Duper. Elucidate the costs incurred by all of Trivialand's busines.
Assume an endogenous growth model with labour augmenting technology.
Explain and show graphically the effect on the supply and demand for Bonds in a deflationary period. What is the effect on interest rates and the quantity of bonds.
By what percentage would GDP be boosted if the value of the services of stay-at-home spouses were included in GDP
DHL prides itself on having its own staff of more than 300,000 people spread across the globe, instead of relying on local agents.
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