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Yesterday you were unexpectedly given a free ticket to a Def Zeppelin concert scheduled for April I. The price printed on the ticket is $75, but the most you could sell it for is only $50. Today you discover that U-Who will be giving a concert that same evening. Tickets for the U-Who concert are still available at $75. Had you known before receiving your Zeppelin ticket yesterday that U-Who would be coming, you definitely would have bought a ticket to see them, not Def Zeppelin. True or false: From what we are told of your preferences, it follows that if you are a rational utility maximize, you should attend the U-Who concert. Explain.
Because of concerns that barbecuing meat using charcoal may cause cancer, the government decides to impose a 100 percent tax at the retail level on charcoal briquets. Suppose the daily demand for charcoal was P = 120 - 2Q and the supply was P = 30 + Q, where Pis in dollars and Q is the number of 10-kg bags of charcoal sold daily.
a) Give the before-tax charcoal price and quantity exchanged.
b) Give the after-tax charcoal price to buyers, the quantity exchanged, and total tax revenues.
c) How is the tax divided among sellers and buyers?
Develop an exponential smoothing forecast with smoothing constants α =0.1 and 0.3. What would be the forecast for week 11?
If you can borrow (and lend) money at an interest rate of 8 percent, will the investment be a profitable undertaking? Is the project profitable at an interest rate of 12 per cent? Provide numerical calculations in support of your answers.
Essay on Market imperfection associated with negative externalities.
Finding the short run and long run profit maximizing price - quantity and number of firms in industry.
Use Excel program to estimate of the state's demand for KBC microbrews in Ohio. Print (past) the computer regression output and provide an economic interpretation of the regression results.
What are the two problems facing the Bank of Canada in trying to control the money supply precisely?
Assume the airline industry consisted of only 2 firms: American and Texas Air Corp. Let the two firms have identical cost functions, C(q) = 40q. Suppose the demand curve for industry is given by P = 100 - Q and that each firm expects the other to ..
Tom earns $15 per hour for up to 40 hours of work each week. he is paid $30 per hour for every hour in excess of 40.
Karen earns $75,000 in the current period and will earn $75,000 in the future. Assuming that these are the only two periods, and that banks in her country borrow and lend at an interest rate r = 0, draw her inter-temporal budget constraint.
Field discusses the key threats to sustainable management of forests and agricultural resources. First summarize these threats. Then,
What is the difference between contractionary and expansionary monetary policy?
Mention and describe the three theories for why the short-run aggregate-supply curve is upward sloping.
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