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Suppose the demand for gasoline is QD = 75 – 25PD and supply is QS = 30 + 20PS, where prices are expressed in dollars per gallon. How does a $0.40 per gallon tax affect the equilibrium price and quantity of gasoline (show both the pre-tax and post- tax equilibria)? What is the elasticity of demand and supply? In the short-run do you expect producers or consumers to put up the most resistance to the tax? What about in the long-run? Explain your answer with sentences.
how must you consider the issues regarding diminishing marginal returns and economies of scale.
Fifty years later, the federal resources for public education shows approximately 10% of the public education budget.
Elvin, a manager at a breakfast cereal company, is faced with the problem of a reduction in sales. After a lot of analysis, Elvin has come up with two courses of actions. He is now contemplating whether to improve packaging or offer discounts to boos..
What was Spindletop? Who were Pattillo Higgins and Capt. Anthony Lucas? How did Spindletop affect John D. Rockefeller’s Standard Oil Company in the area of production, price, and competition?
llustrate what is maximum amount it would be worth to shareholders to elicit high CEO effort all time rather than low CEO effort all time.
Using the World Bank classification of countries, select countries from the different categories and examine the data on output growth and education level. Is there a systematic relationship?
Explain the differences between the Federal Reserve and the U.S. Treasury? Be specific. Do they complement or compete against each other? Could one of then do the others job? Should one be allowed to do the others job? Why?
Given the following total profit function: 1. Determine the level of output of each commodity at which the firm maximizes its total profit 2. Determine the value of total profit at the maximum output level
Price Elasticity of Demand and Price Elasticity of Supply at the equilibrium point.
You are the manager of a firm that competes against four other firms by bidding for government contracts. While you believe your products is better than the competition, the government purchasing agent views the products as identical and purchases fr..
Evaluate the overall explanatory power of the regression model. Use a 0.05 level of significance. State all your hypotheses and explain your results. Do not use rules of thumb. Note: You will need to calculate the F statistic to answer this questi..
If there is a permanent increase in the production function that shifts the aggregate supply curve by 20 units to the right, then so long as there is no change in the expected profit stream of projects, the cost of projects, or uncertainty of the fut..
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