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Higher Prices versus Lower Income. Recall the example of Maxine, who in January has an income of $30 and pays $3 per movie and $1 per book.
a. In February, the prices of movies and books double, but her income stays at $30. Draw her February budget line and shade her budget set.
b. In March, her income is cut in half to $15, but the price of books returns to $1 and the price of movies returns to $3. Draw her March budget line and shade her budget set.
c. Going from February to March, does her utility level increase, decrease, or stay the same? Explain.
The price elasticity of demand for heroin is .27. Suppose that half of the existing heroin users support their habits with property crime. Further, the loss from property crimes committed by heroin users equals half of the total spending (total r..
2-you find $1000 worth of old coins while you are mountain climbing in Colorado.You promptly deposit the coins in your Checking account. if the reserve requirement is 10%, how much money did you ultimately create
The New York Taxi Cab Company has just purchased a new fleet of models for the year 2000. Each brand-new cab cost $20,000. From past experience, the company estimates after-tax cash returns for each cab as: An = $65,800 - 30,250(1 + 0.15)^(n-1)
Assume that a regulator assigns property rights on the externality, i.e. right to make noise or to enjoy an environment free of noise. Show that by agreeing on the airport traffic and on compensations, the two firms reaches the efficient outcome (..
the city council of collegeville receives a petition from students complaining about the high rents in town. As s result the council creates a price ceiling that is $100 below the equilibrium price. What is the new market price
Suppose that firm A merges with firm F. What now will be the concentration ratio in the industry Suppose that after they merge, firms A and F go out of business. What now will be the concentration ratio in this industry
If I am in the state marginal tax rate of 6% and the federal tax rate of 25%, how much before tax rate of return (BTRR) will I have to generate to yield an after-tax of return (ATRR) of 6%
How does your state's performance compare to the U.S economy's performance over the last year? What explanations have been offered in the press? How accurate are they?
In addition, assume that there is an annual subsidy to the student provided through state funding in the amount of $10,000 (that is, this is part of the total cost of educating the student, but is not included in the tuition cost or any other cost..
find gross value added-1import duty-10002 excise duty-10003outpout sold- 50004price per unit of output- 65change in
Analyze tax issues regarding corporate formations, capital structures, income tax, non-liquidating distributions, or other corporate levies - Create an approach to tax research that results in credible and current resources.
The energy Department estimates that domestic demand for natural gas will grow by more than 40 percent between now and 2025. Distinguish between a demand function and a demand curve.
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