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if government places a per-unit tax or an emission charge on a product, the producer tries to force the consumers to pay the majority of the tax. What type of elasticity must the supply curve have for the producers to successfully shift the burden of the tax to the consumers? Show graphically and explain why your answer is correct. Label your curves, axes, equilibrium prices and quantities before and after the tax is places, producer price and the burden to consumers and the burden to producer areas.
Bee keepers in your state have been complaining that the cherry orchard owners are killing bees when they spray cherry trees for pests. you estimate that the private marginal benefit your residents enjoy from cherry consumption is PMB=306-4Q and the ..
A leading organization, inspired by the Grameen bank, is attempting to provide loans to small farmers. it is leading to farmers in groups of two. Explain three reasons why a strategy of group leading may be better than a strategy of lending to indivi..
What is soft gatekeeping?
According to a study, the price elasticity of jewelry is 1.2 and its income elasticity is 1.5 in the U.S. a. Would you suggest that Patton’s Jewelry Company cut its prices to increase its revenue? b. What would be expected to happen to the total quan..
You decide to buy 1,600 shares of stock at a price of $64 and an initial margin of 50 percent. What is the maximum percentage decline in the stock before you will receive a margin call if the maintenance margin is 35 percent?
Alternative I require an initial investment of $20,000 and will yield a rate of 15% per year. Alternative C which requires a $30,000 investment will yield 20% per year. Which of the following statements is true about the rate of return on the $10,000..
If inflation turns out to be 1% over the life of the loan, what is the real interest rate? Who gains from unexpectedly low inflation, Loretta or Ted?
the set of efficient trades these individuals would rationally make. One of the points on the set of efficient trades you illustrated in your diagram will be a competitive equilibrium.
Suppose that the U.S. Department of Agriculture (USDA) administers the price floor for cheese, set at $0.17 per pound of cheese. The graph also shows that the minimum price at which a few of the producers are willing to sell is $0.06 per pound. In t..
Suppose that the U.S. economy is initially in Long Run Macroeconomic Equilibrium. An increase in the corporate income tax rate will lead the U.S. ____ curve to shift and create a(n) ____.
a perfectly competitive industry has... A. A perfectly elastic demand curve B. A downward sloping supply curve C. A perfectly elastic supply curve D. A downward sloping demand curve
If the government provides every citizen a hula-hoop then it follows that in economic terms:
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