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Suppose the U.S. government imposes a $1 per gallon of milk tax on dairy farmers. Using the demand and supply equations from question 1:
a. What is the effect of the tax on the supply equation? The demand equation?
b. What are the new equilibrium price and quantity?
c. How much do dairy farmers receive per gallon of milk after the tax? How much do demanders pay?
a city has decided to build a softball complex and the city council has already voted to fund the project at the level of $800,000 (initial capital investment) the city engineer has collected the following financial information for the complex pro..
One hundred compressors of 200 H.P. rating are being considered for purchase by the state highway department. The consumer price index was 400 five years ago and is 520 today. The cost of 150 H.P. compressors bought five years ago is as follows
The federal mobile-source air-pollution program means that new cars sold in rural regions meet the same emissions standards as cars sold in urban areas. Because there are fewer cars in rural areas, this means that air quality will be a lot better ..
Suppose the money supply is currently $500 billion and theFed wishes to increase it by $100 billion. If it decided to change the money supply by changing the required reserve ratio, what change should it make
If the current price of the product is $100, what is the quantity supplied and the quantity demanded How would you describe this situation and what would you expect to happen in this market
Consider the following regression equation: Yi = β2X2i + β3X3i + ei, i = 1, 2, .., n, Write down each of the classical assumptions specifically
Consider the production of textiles. To make textiles, it takes cotton (C, measured in pounds) and it takes labor (L, measured in man-hours). The total yards of fabric (F) produced is given by the production function F=L*(C^.5). If you currently h..
Tom and Larry must spend a day working together. Tom likes to smoke cigars and the price of a cigar is $2. Larry likes a smoke-free environment.
Find two countries that had a fixed exchange rate for a period sometime during the last 20 years. [Hint: Choose one of the developing countries (e.g., Malaysia, Thailand). ]
Please compute the standard error of estimate and the standard error of the coefficient for the following data set: X = 95, 85, 80, 70, 60 and Y = 85, 95, 70, 65, 70. Lastly, set up and perform the hypothesis test to determine if a student's aptit..
the figures below indicate the number of mergers that took place in the savings and loan industry over a 12-year
Calculate the total price paid by consumers and the total price received and kept by producers after a tax of .30 per gallon is levied on consumers. What is the tax burden on producers and on consumers
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