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Consider the market for picture frames.
1. If the market has a very elastic demand curve and inelastic supply curve, how would the application of a subsidy is shared between consumers and producers? Use the tools of producer surplus and consumer surplus to answer this question. Is there a deadweight loss from the subsidy?
2. If instead, the picture frame market were characterized by a very an inelastic demand curve and elastic supply curve, how would the application of a subsidy be shared between consumers and producers.
Suppose that upon entering the European Union (EU), it is discovered that the cost of automobile production in Poland is €14,000 while it is €20,000 in Germany. Suppose that the EU, which has a customs union, has an X percent tariff on automobiles..
What would be the advantages and disadvantages of a regulatory system in which , rather than having the FDA merely published its opinions about the safety and efficiency of drugs and the allowed physicians
Compute an approximation using blocks of 10 wolves and compute an exact value by finding the total area under person 1's demand curve.
Explain how the nominal dollar/euro exchange rate would be affected (all else equal) by permanent changes in the expected rate of real depreciation of the dollar against the euro.
This is a self-reflection paper developed based on the classroom discussion around minimum wage. Explain the effect minimum wage has on the economy. List and describe both the pros and cons of the more recent increases in the federal minimum wage...
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consider the production function ql12k2.a what is the expression for mrtslk given this production function?b does this
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