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Suppose demand and supply are given by
Qxd =7- 1/2Px and
Qxs =1/4Px-1/2
• 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.
Describe a skimming price and a penetration price, and advise them whether they should charge a skimming price or a penetration price, with supportive reasoning for and against each pricing alternative.
Avoid having developed economies regress to a Smoot-Hawley type of isolationism or protectionism to avoid job losses in import-competing sectors.
Explain the essential distinctions among the stages-of-growth theory of development, the Structural change models of Lewis and Chenery.
Each station's objective is to maximize its viewing audience, in order to maximize the station advertising revenue.
The cost leadership approach implicates competing by having a lower cost than one's competitors
If she neither borrows nor lends, which project has the higher present value at the interest rate 50%. Which has the higher present value at an interest rate of 5%.
Between two production technologies firm can choose a new product line. If it installs expertise 1, it's annually costs.
If the company has not paid dividends, discuss why think the company is not paying dividends or whether they should consider adopting a dividend policy.
Price elasticity of demand is 1.5 and a firm raises its price by 20 percent the quantity sold by the firm will ceteris paribus.
Find the equilibrium price and quantity algebraically. If tourists decide they do not really like T-shirts that much, which of the following might be the new demand curve.
Consider a small economy in which consumers buy only two goods pies and tarts. In order to compute the consumer price index for this economy for two or more consecutive years.
Define Mercantilism, Pick a country and talk about the products they import and export with the U.S.A. Also talk about the composition of trade with relation of abundance of the two countries
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