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Research suggests that taxing pizza and soda would reduce the incidence of obesity in the U.S.A. Suppose you were required to choose between a price ceiling and a floor price to achieve the same result. which would you choose, and would you set it above or below the equilibrium price? Given your choice of policy, would you expect a shortage or surplus in the market for pizza? Illustrate on a single graph the effects of your chosen policy. Ensure that you clearly lable the following points:
a) actual price and quantity given your chosen policy (Pa,Qa).
b) Equilibrium price and quantity in the absence of your chosen policy (P*,Q*)
If Wachovia bank receives a $10,000 deposit, and the required reserve ratio is 0.10 (= 10%), how much can the bank loan out? Assume that Wachovia keeps zero excess reserves and only keeps the required minimum reserves.
Deborah Milstead is considering buying a home for $200,000 a) if she makes a down payment of $50,000 and takes out a mortgage on the rest of the money at 7.8% compounded monthly, what will be her monthly payment to retire the mortgage in 15 years
The invers demand curve for a monopolist changes from P=100-2Q to P=120-2Q while the marginal cost of producing remains unchanged at a constant $20. what happens to the deadweight loss
A delivery company is considering adding another vehicle to its delivery fleet, all the vehicles of which are rented for $100 per day. Assume that the additional vehicle would be capable of delivering 1500 packages per day and that each package th..
A clinic uses doctors and nurses optimally and is servicing the maximum number of patients given a limited annual payroll. The last doctor hired treated 1,600 extra patients in a year, while the last nurse hired treated 1,000 extra patients in a y..
My paper firm generates a monthly profit of $500,000 as I dump a noxious affluent into the nearby river due to the absence of law or regulation. Your downstream brewery must therefore filter the water before it is used to make beer which, in turn,..
You have purchased equipment costing $20,000. The equipment will be used for two years, and at the end of two years, its salvage value is expected to be $10,000. The equipment will be used 6,000 hours the first year and 8,000 hours the second year..
suppose that the cost of raw material used in the production of this good increases (assume nothing else has changed). Draw a diagram comparing the effect of the increase in the cost of materials in this market with the equilibrium
This utility function implies that Shelly's marginal utility of leisure is C - 200 and her marginal utility of consumption is L - 80. There are 168 hours in the week available to split between work and leisure. Shelly earns $5 per hour after taxes..
Eisner's bonus was $2.6 million in 1996 and $6 million in 1987. Including the stock options he exercised, his compensation in 1988 was about $41 million, a record at that time for any U.S. executive. In 1993, his total compensation was about $202 ..
to pay for college, you have just taken out a $1000 gov. loan that makes you to pay $126 per year for 25 years. however, you don't have to start making the payment until you graduate from college two years from now. why is the yield to maturity ne..
If an alternative has an advance payment of $100,000 upon contract award and then quarterly payments of $25,000 for the next 3 years, what would the cash flow diagram look like
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