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Beatriz enjoys writing and uses a large amount of paper. Currently, paper costs $2 for 100 sheets. The formula for her demand curve is S = 525 - 50PS, where PS is the price of 100 sheets and S is the number of sheets purchased. The governor of her state has proposed taxing paper at the rate of $0.50 for each 100 sheets. Assume that this policy would increase the price of paper to $2.50 (including tax).
a. Draw Beatriz' demand curve. Using the method described in Section 6.2, compute the change in her consumer surplus for the proposed tax increase.
b. How much revenue will the government raise by taxing Beatriz? How does that revenue compare to her economic losses? Does the new tax raise enough revenue for the government to compensate her for her loss?
a. Calculate a trend line and forecast sales for 2008. How confident are you of this forecast . Use exponential smoothing with a smoothing factor w=0.7. What is your 2008 forecast How confident are you of this forecast1998 200 2003 302 1999 215 2004 ..
Suppose now thatbefore making this product, the firm has to pay fixed costs of research anddevelopment equal to $3,000,000. How large does N need to be before theprofit-maximizing firm chooses to pay the fixed cost
The number of hours spent studying by students on a large campus in the week before final exams follows a normal distribution with a standard deviation of 8.4 hours.A random sample of these students is taken
They want to deposit the sum in an account that earns 8% compounded continuously. Beginning when she turns 6 and ending when she turns 21, how much should they deposit on each birthday if she is to get $28,000 on each birthday from her 21st to her..
The City of Greenville needs to raise revenue. Alderman Black has proposed a $10 tax on red cars in the city, currently numbering 2,000. Mayor White, who wants more than $20,000 in revenue, proposes taxing these cars at $100 each.
What effect will this condition and contingency have upon the audit opinion? Give reasons for your position.
If a country is not specified, you can assume the action is performed in the United States.
Suppose the housemates have the property rights to a quiet house. How many hours will Vivian practice? Who gets how much money
(A) What are you monthly interest rate and annual effective interest rate (B) if your current outstanding balance is 3,000 and you skip payments for two months, what would be the total balance two months from now
Each firm's decision will affect its own profits, as well as profits of its competitor. The following payoff matrix shows the possible outcomes for this game between Coke and Pepsi. Here Coke is the row player and Pepsi the column player.
Rob currently earns a salary of $1,000 per week as an economics instructor. His next best career would have been an assistant manager at Pizza Hut, where he would have earned $12 per hour, and would have worked for 40 hours per week.
Adam, Joe and Estelle constitute the entire market for chicken. Adam's demand curve is given by QA = 100 - 2P Joe's demand curve is given by QJ = 160 - 4P Estelle's demand curve is given by QE = 150 - 5P Using this information, when P = 35 Adam's, Jo..
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