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Suppose that in 2013 PECO generated 100 billion kilo-watt-hours (kwh) of electricity that it provided to its customers at a charge of $.08 per kwh. Suppose that as a result of excessive earnings, the state regulatory commission ordered PECO to reduce its rates from $.08 per kwh to $.07 per kwh. Had the decrease been in effect in 2013, the state commission's economic consultant believed the quantity demanded would have been 103 billion kwh of electricity, providing an increase in consumer surplus of __. What would have been the increase in consumer surplus? (quantify the change in consumer surplus using the same approach used in the slides to determine Lisa's increase in her consumer surplus.)
the following data are available for output q and long run total cost ltc for a firm. using appropriate calculations
Suppose that Melanie had 200000 of disposable income and spent 180,000 on consumption in 2006 & had 300,000 of disposable income & spent 240,000 on consumption in 2007
Suppose that GDP is 5,000. Consumption is C=1,000+.3(Y-T). Investment is I=1500-50r, where r is the real interest rate. Taxes are 1,000 and government expenditures are 1,500.
1.which of the following statements is correct?a limited access to the health care system is a major cause of rising
Illustrate what price per ride must the public transportation authority charge to eliminate the deficit if it cannot reduce costs.
Explain how governments restrict international trade and who benefits as well as who loses from the restrictions - Cisco and other major corporations close down their American operations and move to Africa?
You are the manager of a firm that produces and markets a generic type of soft drink in a competitive market. In addition to the large number of generic products in your market, you also compete against major brands suh as Coca-Cola and Pepsi.
what distinguishes public good from private goods what happens to total revenue given a price increase and demand is inelastic Why What is the difference b/w economic and accounting profit Why is a difference b/w them important
Calculate the expected level of demand in a typical market. Indicate the range within which actual demand is expected to fall with 95% confidence.
Find the equation of the new demand curve for Chevrolets. What is the relationship between D C and D' C ? What explains this relationship?
what are the highest and lowest payments from the writer that the beekeeper- farmer team will accept for the sixth day Assuming that the farmer can dispose of $7 from the writer as she wishes, what range of payments will the beekeeper accept
Elucidate your own words why even long term heavy drinkers might be highly responsive to increases in the price of alcohol.
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