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Suppose that the State of Connecticut decides to subsidize the cost of purchasing a treadmill for cardiac patients, as prescribed by their doctors. Prior to the program, the equilibrium price of treadmills was $800, and the equilibrium quantity purchased was 50,000.
The state decides to subsidize $600 of the cost of the treadmill, and with the subsidy, the quantity that consumers wish to purchase is 70,000. Manufacturers are willing to supply this quantity at a price of $1,000.
The cost of this program to the State of Connecticut is $___ million.
After the subsidy, consumers will pay ___% of the cost of the treadmill, and the state will pay ___% of the cost.
How can I calculate both?
A 10-year $20,000 savings bond with a coupon rate of 8% payable quarterly has what present worth if the purchaser anticipates a 10% quarterly rate of return?
q1. illustrate what is the marginal revenue from selling another book for the author? explain how does it compare to
what price will the firm charge to maximize its profits? what are total profits? Would a 50% tax on profits alter the firms output? by what amount and why?
The salvage value of either alternative is negligible at any time. If MARR is 10% per year, what present expenditure for the auxiliary equipment can plan you justify spending? Assume that you need the heating system in?nitely.
Locate an article from a financial periodical from the past 2 years about a company that restated its financial statements due to an error in accounting principal. Examples of periodicals are CFO and Journal of Accountancy.
The economy is hit with a positive LRAS shock and you, in your role as a central banker, respond with an active policy response to stabilize inflation. (a) Draw an AS/AD diagram illustrating the changes in output and inflation. (b) Describe briefly h..
Elucidate how are the benefits and costs of this tariff distributed among consumers and producers.
Illustrate what is the products price after the imposition of the tariff. what is the domestic value added before and after the imposition of the tariff.
Which bank is giving the best deal? If they go with that bank, how many dollars in interest will they pay?
Consider a palletizer and a bottling plant that has a first cost of $150,000. It has operating and maintenance costs of $17,500 per year, and an estimated net salvage value of $25,000 at the end of 30 years. Assume an interest rate of 8% per year. Wh..
A firm's production function is qi = 2Li + 10Ki. Assume both variables can be adjusted, even in the short run (for instance, making an item by hand versus using a machine to do so). What is the firm's cost function, if w=$15, and r = $100?
Illustrate what are some of the downside risks also potential problems involved when using fiscal policy.
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