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The equilibrium price and quantity of gasoline is $2.50 per gallon and equilibrium quantity is 15 million gallons. The price elasticity of demand is -0.5 and the price elasticity of supply is 1.
The state legislates that a sales tax of $0.10 per gallon should be imposed on oil companies as a measure to collect revenue and cut oil consumption.
a) Find the price and quantity sold in the market after the tax is imposed.
Consider a person who can work up to 80 hours each week at a pre-tax wage of $20 per hour but faces a constant 20% payroll tax. Under these conditions, the worker maximizes her utility by choosing to work 50 hours each week. Show that the worker will..
While you were an intern you bought 5 packages of hot dogs a month. After acquiring a full-time job with a considerably higher salary, you stopped purchasing hot dogs. Explain this behavior? Peter’s Pizzeria sells both pizzas and wings. It wants to i..
Elucidate what is the calculation for a stock with a beta of -03, 07 and 1.6. Show calculations in 3 separate answeres.
Actual GDP in a country is estimated to be 10% below potential GDP. Prices are virtually unchanged from one year ago. Unemployment is 12% of the labor force (much higher than the natural rate of unemployment). Which of the following policies would be..
Illustrate the effect of capital formatin by comparing the production possibility curves, at the present time and ten years in the future, for two economies, one with a high and the other with a low rate of capital formation.
Nuclear safety devices installed several years ago have been depreciated from a ?rst cost of $200,000 to zero using MACRS. The devices can be sold on the used equipment market for an estimated $15,000. Use a 5-year study period, an effective tax rate..
Please apply demand and supply analysis to answer the following questions related to the U.S. real estate market: What is the impact on residential real estate market after the Fed stopped QE3 (buying bonds monthly from banks) in 2014? Please state t..
q.the cost of hiring a new lab technician is 8000 per month including fringes the cost of leasing additional testing
Suppose a firm sells a good in 2 markets, each market is characterized by their own respective demand curve. Calculate the profit maximizing outputs and prices in each market assuming the firm can price discriminate. Calculate the own price elasticit..
In a Tragedy of the Commons scenario, the commons production function is F(X)= 1.6X - 0.2X^2. The rate of return outside the commons remains 0.1. Find the symmetric Nash Equilibrium when there are seven players. Is your solution tragic?
The firm has access to a perfect credit market with interest rate r. What is the maximum price the firm is willing to pay for a fork lift?
Identify which of the following are extent decisions. Decide whether to expand an existing product into a new region. George’s T-Shirt shop products 5,000 custom-printed T-shirts per month. George’s fixed costs are $15,000 per month. The marginal co..
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