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The demand for cigarettes is price inelastic, but not perfectly inelastic. The supply of cigarettes is elastic, but not perfectly elastic. If there were no price controls or other complicating regulations, what would a model of supply and demand therefore predict if a high cigarette tax were removed?
The price consumers pay would fall by the full amount of the tax.
The price consumers pay would fall by most of the amount of the tax.
The price consumers pay would be unchanged.
The price consumers pay would fall by less than half of the tax amount.
What is one cited reason why healthcare expenditures are so high in the United States? Medicare and Medicaid reduce the supply of medical care.
Suppose that, from an initial consumer equilibrium position, the price of one good falls while the price of the other good remains the same. Using indifference curve analysis, explain how and why the consumer's relative consumption of the two goods w..
What are the major causes of currency crises, and how can countries prevent these types of crises? What should be done if a crisis occurs? Use the interest rate parity model of exchange rate determination to explain what policies should be followed d..
q1. if michael has 48 to spend on cola and pretzels what combination should he purchase in order to maximize his
Does the production technology exhibit increasing/decreasing/constant returns to scale.
City Farm Insurance has collection centers across the country to speed up collections. The company also makes its disbursements from remote disbursement centers. If City Farm has $5 million per day in collections and $3 million per day in disbursemen..
Describe the rationale behind arriving at figures for the natural rate of unemployment, stable prices, and sustainable economic growth.
What is the difference between contractionary and expansionary monetary policy? What is the intention of each policy under a depression, recession, or robust economy? Which type of monetary policy is more appropriate today and why?
Describe the relationship of race, class, and gender and its effect on health and mental care delivery in the United States. What steps could be taken to guarantee that all have the same access to the appropriate health care? Should funds be made ava..
Unemployment is a more serious economic problem than inflation and it should be the focus of the Fed’s monetary policy.” Evaluate this statement and explain why the Fed’s primary policy goal is price stability.
Assume that the price of x is $2 and the price of y is $1 and Brian has an income of $10. How much does he consume of each good? Assume Brian's income increases to 20$, calculate his demand for each good and explain whether Brian considers x and y to..
Give an example of how an organization may use household data and individual data as part of their CRM strategy. How would these data sets affect their marketing strategy?
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