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Q. University of Richmond Professor Erik Craft analyzed the states' pricing of vanity plates. He found that in California, where vanity plates cost $28.75, the elasticity of demand was 0.52. In Massachusetts where vanity plates cost $50 elasticity of demand were 3.52.
Assuming vanity plates have zero production cost and his estimates are correct, was each state collecting the maximum revenue it could from vanity plates? Elucidate your reasoning. What recommendation would you've for every state to maximize revenue? Presumptuous the demand curves were linear or graphically demonstrate your reasoning.
They found that getting larger was painful it involved a lot of new administrative infrastructure to get everything organized
How macroeconomic equilibrium does an economy achieve. Elucidate what affect does a high level of inflation have on macroeconomic equilibrium.
In this forum we discuss the different arguments that are made in favor of international trade protectionism and the important role of the politics of protectionism.
Results of drilling are 15 dry holes, 12 gas producers, 18 oil wells, and 20 wells producing both oil and gas.
Suppose you read in the newspaper that all last week the Fed conducted purchases in open market, and that on Tuesday of last week it lowered the discount rate.
Find the equilibrium values of the real interest rate, consumption, investment, and the price level.
In 2020, Ahmed decides to invest in a wind turbine that would produce and sell electricity to the local electric utility. He decides to buy a smaller, used turbine.
Law of demand does not hold since attendance at the major league parks has dropped while at the same time ticket prices have fallen.
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What is the deadweight loss if buyers, instead of vendors, are required to pay the tax of $4 for each unit of the good sold.
Depict the von Neumann-Morgenstern utility index u in a diagram
Will the brothers gain if they specialize. Illustrate your answer with an example.
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