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If the government establishes a quantity subsidy on the consumption of a good, it means that the consumer has to pay for each unity of the good its price minus the subsidy. That is, the price of the good becomes, in the consumer’s point of view, p−s, where p is the price of the good and s is the subsidy. Suppose the budget line is given by p1x1 + p2x2 = m. The government decides to impose a quantity tax of t on good 1 and a quantity subsidy of s on good 2. What is the formula for the new budget line? Can you tell whether it becomes ?atter or steeper?
You have been provided with an Access database that contains sales data from a small bakery. The data has information about the client, bread type, cost to produce the bread and sales. You have been tasked to provide a few reports. Provide and descri..
Suppose the following system of equations: MAC = 60, 4E, MD = 2E, where E=level of emission per month. Solve for socially efficient equilibrium. Show it graphically. Compute total damage (TD) at this equilibrium.
Suppose that Country B has the same amount of net private saving in Year 1 and in Year 2. However, the government of Country B has a budget surplus of $200 billion in Year 1 and a budget surplus of $100 billion in Year 2. Other things equal, this ten..
There is a potential entrant, who needs to pay a sunk cost of f to enter in this market. Firms may produce any quantity that does not exceed its capacity.
Demonstrate graphically the cost of income taxation of 30% to consumers and producers for an income of $27,908 and how does the taxation change if the income was $220,874?
disregard the portion of the supply curve that corresponds to prices where there is no output.
q.if a firm faces a shortage of workers with very specific skills it may decide to undertake the necessary training
The United Nation's Department of Economic and Social Affairs, Population Division, tracks the total number of foreign-born people by nation.
Suppose market demand and supply are given by Qd=100-2P and Qs=5+3p. If a price floor of $30 is set, what will be size of the resulting surplus?
Kermit is considering purchasing a new computer system. The purchase price is $135276. Kermit will borrow one-fourth of the purchase price from a bank at 10 percent per year compounded annually. The loan is to be repaid using equal annual payments ov..
q1. do protectionist policies benefit producers consumers workers or the government? explain. explain how the buy
Elucidate the opportunity costs for the manager of being in this business relative to returning to his old job. what is the economic profit of the business.
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