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Using a demand function of P = 7 – 2Q and a supply function of P = 4 + Q, and when adding an unit excise tax of $1.50, determine the following:
1) Who really bears the burden of this tax? I. Consumers II. Producers or III. Both
2) How much of the tax burden does each bear?
3) Who bears more? Why? What causes them to bear more of the tax burden?
Assume that a person considers carrots (X) and peas (Y) to be normal goods and has convex preferences. a. Design an indifference curve-budget line diagram showing the substitution and income effects created when the price of carrots increases. In you..
Explain your answer what would happen to the value of gold if public discovered that it could simply be made at home from inexpensive materials.
Which of the following is the result of the "Great Compromise" between the small and large population states?
Refer to the Real Estate data, which reports information of homes sold in the Goodyear, Arizona, area during the last year. Prepare a report on the selling prices of the homes.
Given the rapid pace of technological change and financial innovation in financial markets nationally and internationally, would it be economically efficient to not deregulate banking? Explain.
Suppose the unemployment is above the natural rate and the economy is at an inflation rate. How does the economy return to the natural rate of unemployment if this lower inflation rate persists?
David gets $3 per month as an allowance to spend any way he pleases. Since he likes only peanut butter and jelly sandwiches, he spends the entire amount on peanut butter (at $0:05 per ounce) and jelly (at $0:1 per ounce). Bread is provided free of..
Jenny, your niece, is a smart high-school student who wants to make intelligent choices for her future. Hearing of your course in business economics,
Assume that the industry wants to expand and has to make some long-term capital budgeting decisions. Now the industry is confronted with government regulations to oversee the merger.
what is the diamonds water paradox and how is it
Explain the output effect and the price effect for an oligopoly. How does each influence the oligopolist's production decision?
Companies that reduce their margins on export products in the face of appreciation of their home currency may be motivated by a desire to
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