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Chipotle wants to run an experiment to estimate the demand elasticity for its customers who consume pork burritos. Chipotle raises the price of pork burritos 5% in half of its restaurants, but keeps the price of pork burritos unchanged in the other half. After a month, sales of pork burritos are down 7.5% in the restaurants that increased price, while sales of pork burritos are down 2% in the restaurants that didn’t increase price (note: these numbers are changes, i.e. the difference between before and after). What is the difference-in-difference estimate of the demand elasticity?
Abe, Betty and Charlie are the only three students in my graduate Public Finance class and I am trying to determine how many office hours to hold per week for this class. according to the benefit principle of taxation. What would I charge each studen..
Explain how businesses maximize profits in a perfectly competitive market. Comment on the benefits to consumers in such as market.
the impossible trinity refers to the idea that a country can simultaneously pursue only two of the three following
1. 1.because bank funding markets are global and have at times broken down disrupting the provision of credit to
The market demand and supply function for VCR movie rentals are: QD= 10 - 0.04p and QS 3.8P = 4. Calculate the equilibrium quantity and price.
In recent years, Americans are finding new jobs but aren't finding employers willing to give meaningful pay increases. The unemployment rate is the lowest in 7 years. Never before has the unemployment rate been so low but wages have stayed so flat. W..
In the international environment, it is apparent that China is making large investments in the global financial markets in their shift away from exports. Is there a connection between China's exports and its financial investments in other countries?
Three years ago Maricopa County implemented a policy to tackle the problem of particulate matter in the air. The project/policy consisted in paving and compacting some of the roads the dairy industry uses for feeding the cattle and transporting the m..
Suppose a government moves to reduce a budget deficit. Using the model developed in class: a) Graphically illustrate the impact of reducing the government’s budget deficit by increasing (lumpsum) taxes on household income. Be sure to label:
If people in Pantherville hold all money as currency, what is the quantity of money - what is the quantity of money?
Barbara’s utility for 2 goods X and Y is given by U(x, y) = x^0.6y^0.4. Let I denote income and px and py denote the prices of good X and Y respectively. What is Barbara’s gain in consumer surplus if price of good X decreases from $20 to $15
If price controls are initiated, we would expect that
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