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You are an assistant to a senator who chairs an ad hoe committee on reforming taxes o telecommunication services. Based on your research, AT&T has spent over $15 million on related paperwork and compliance costs, Moreover, depending on the locale, telecom taxes can amount to as much as 25 percent of a consumer's phone bill. These high tax rates on telecom services have become quite controversial, due to the fact that the regulation of the telecom industry has led to a highly competitive market. Your best estimates indicate that based on current tax rates, the monthly market demand for telecommunication services is given by Qd=250 -5P and the market supplying (including taxes) is Qs=4P-110(both in millions) where P is the monthly price of telecommunication services. The senator is considering tax reform that would dramatically cut tax rates, leading to a supply function reform that would dramatically cut tax rates, leading, to a supply function under the new tax policy of Q^s= 4.171P -110. How much money would a typical consumer save each month as a result of the proposed legislation?
Illustrate what are possible causes of a movement up or down along the demand curve. What are possible causes of a movement up or down along the supply curve.
What is one significant consequence of fractional reserve banking Banks are vulnerable to "panics" or "bank runs." Banks can only lend an amount equal to its deposits. Banks hold a portion of their deposits in gold. Banks can serve the withdrawals..
The United State is currently running an $800 Billion trade deficit. Is this bad for the economy? Suggestion: use the GDP computation, GDP= C + G+ Ig + Xn.
Explain how has a more diversified labor force affected the corporate structure and the economy.
Illustrate what are the mistakes made by investors in dealing with foreign exchange investments? Provide examples.
If consumers had been given more time to adjust to price changes, would you expect the price elasticity of demand to be more inelastic or more elastic? Explain. h. Consider the price elasticity of demand for the category flights on all airlines be..
1) What is the probability that a microprocessor will have 0 imperfections 2) What is the probability that a microprocessor will have more than 2 imperfections 3) Out of the 100 microprocessors on the sheet, how many would you expect to have more tha..
Discuss what has occurred to change the demand for or the supply of the meats, market prices of the meats and its price elasticity of demand.
Illustrate what is your rate of return for each alternative for four stock prices one year from now. Summarize your results in a table that shows the rate of return on investment for all three alternatives.
Describe the effects of a price ceiling also a price floor on a market. As for what happens with pricing is different than equilibrium, a price Floor is Minimum wage.
The question used this table that demonstrate the value of GDP in the nation of Purintania. The figures demonstrate are in millions of 1980 dollars and current dollars.
Elucidate the difference between GDP and GNP. What adjustments needs to be made to GDP to arrive at GNP.
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