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What effect does a specific tax have on equilibrium price and quantity, and what is the incidence of the tax on consumers and producers, if the following statement is true:
1. The demand curve is perfectly inelastic.
2. The demand curve is perfectly elastic.
3. The supply curve is perfectly inelastic.
4. The supply curve is perfectly elastic.
Use graphs to justify your answers.
Suppose you live in neighborhood of 30 houses with a mean value of $50,000 (PE = $50,000 QE = 30). Your neighbor has just put new landscaping in and re-sided his home. What type of externality is occurring here? Using a graph, show how the free marke..
Consider the following price indexes: 90 in 2008, 100 in 2009, 110 in 2010, 121 in 2011, and 150 in 2012. (show all work) What is the base year? How do you know this? What is the inflation rate between 2009 to 2010?
What are the portfolio weights for a portfolio that has 154 shares of Stock A that sell for $50 per share and 120 shares of Stock B that sell for $25 per share?
Why is a solid national security structure so important to the international political economy? Discuss and compare two nations one where the security structure is strong and other where it is not strong and analyze their international trade success,..
We suggested above that an annually increasing renewal fee would be an efficient means of setting optimal patent life. Similarly, suppose that owners who wanted to restrict future use of their property had to pay a fee for each year that the restrict..
Suppose that the insurance company would set the premium by imposing a zero profit restriction. That is, the premium would be set to be (1+L)EB, where L is the loading factor and EB is the expected benefit. Let us assume that L = 20%. Calculate the p..
q.a coal-fired power plant can produce electricity at a variable cost of 4 cents per kilowatt hour when running at its
Illustrate what is the meaning of economies of scope and explain how do they differ from economies of scale.
A natural monopoly has an incentive to pad its cost of production under which type of regulation?
Derive the LM curve when the money supply increases by 500. Derive the LM curve when money supply decreases by 10%. Find the value of money demanded when income Y = 15,000 and interest rate R = 5. Is this equilibrium? Why? Why not?
q1. james marshallian demand function clarifies the utility maximization problem that is max u x1 x2. as the cost of
q1. what homeland security challenges could the u.s. face in the future? describe at least two challenges and identify
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