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Regarding market constraints: A. Explain how taxes and quotas will affect the market price, the consumption level, and total (consumer plus producer) surplus in a particular market. B. Will you answer depend on whether the market is perfectly competitive vs. monopolized by a single firm? Explain. C. Repeated (important question): An article in the Corvallis Gazette-Times (“Water Worries Draw Study of Willamette, February 26, 2011, p. A3) suggests that global warming will cause a water shortage in the Willamette Valley. What is meant by a shortage? Can global warming cause a water shortage if there is a free market (i.e., no government involvement) for water?
If you purchase a $25,000 car, which is to be paid for in 60 monthly installments of $489.15, what effective annual interest are you paying for this financing arrangement?
Report on an article from the Economist, identifying a market failure, defending or critiquing existing policies meant to deal with the market failure, and suggesting possible policy improvements using economic language and analytical tools
Illustrate what might you call an outward shift of a nation's production possibilities frontier.
Suppose the own price elasticity of market demand for retail gasoline is -0.9, the Rothschild index is 0.3, and a typical gasoline retailer enjoys sales of $2,350,000 annually. What is the price elasticity of demand for a representative gasoline reta..
Luxembourg imports a good at a world price of $10 each. The domestic supply curve is S = 50 + 5P where P is in Ecu and lEcu = $1. Demand curve is D = 400 - 1OP. Draw demand and supply curves for this good and indicate how much is imported.
The terms price maker, price setter, and price searcher are all meant to imply the same thing, which is. In monopoly,
Find a pop culture reference (from TV, movie, music, magazine...) of an economic concept. The reference can be anything we have covered in class.
Suppose you have a demand function given by: Q = 360 ? 2P. What is the price elasticity of demand when the price is P = $20? You will have to use the point elasticity formula.
If the money supply is growing at a rate of 6 percent a year, real GDP is growing at a rate of 3 percent, and velocity is constant, what will the inflation rate be?
What statistic is designed to detect multicollinearity in a regression model?
What would be the resulting effect on equilibrium price level - explain. What will be the effect of the different tools of fiscal policy to stabilize the economy?
A university spent $1.8 million to install solar panels atop a parking garage. These panels will have a capacity of 500kw, have a life expectancy of 20 years and suppose the discount rate is 10%. If efficient systems operate for 2400 hours per year, ..
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