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Suppose the market for grass seed can be expressed as
Demand: Q = 200 - 5p
Supply: Q= 40 + 5p
If the government collects a $5 per unit tax from sellers,
a) how much will the quantity demanded change from the amount demanded before the tax?
b) what price will consumers pay after the tax?
c) what price will sellers receive after the tax?
d) what is the tax revenue?
Explain the unemployment rate and inflation rate for your local area and compare it to the national average. Analyze how a discouraged worker will not be represented with the unemployment rate.
How do these tools (payoff tables and game forms) help decision-makers to avoid incomplete thinking and over- inclusive thinking in their judgments?
Investment A is currently worth $59,000 and is growing at the rate of 13?% per year compounded continuously. Investment B is currently worth $50,000 and is growing at the rate of 14% per year compounded continuously. After how many years will the two..
For a perfectly competitive firm, the price of its product is $3.50. If an additional unit of a resource yields a value of the marginal product (or MRP) equal to $24.50, what is the value of the marginal-physical product? A firm's objective in busine..
In March 2008, the Fed helped prevent the bankruptcy of Bear Sterns. However, in September 2008, the Fed and the Treasury let Lehman Brothers go bankrupt. What accounts for the different decisions?
The following questions are based on open economy macroeconomic model. The answers must be written in your words along with graphical illustration. Without explaining in your words, the graphical illustration alone will not be credible. what type of ..
Assume that there is a competitive industry composed of five identical firms, each of which has the following cost schedule: The firm's level of marginal cost is equal to a quarter of its own level of output. For example, at an output level of 10, ma..
Everett McCleskey, a local business person, is a good friend of Al Miller, the owner of a local candy store. Every day on his lunch hour, McCleskey goes into Miller’s candy store and stays about five minutes. After looking at the candy and talking to..
DIMINISHING MARGINAL PRODUCT - Suppose you are the owner of any type of hypothetical start-up business. Suppose your total revenue is currently increasing when you use more inputs (materials, labor, machines, etc). Do you think you are maximizing the..
A bond that matures in 19 years has a ?$1,000 par value. The annual coupon interest rate is 12 percent and the? market's required yield to maturity on a? comparable-risk bond is 14 percent. What would be the value of this bond if it paid interest? an..
A 15-year Treasury bond as a face value of $1,000, price of $928 with a $30 coupon payment. Assume the price of this bond increases to $936 over the next year. The one-year holding period return is equal to 2.35% 5.72% 4.09% 3.40%
Consider an economy that initially has a labor force of 2000 workers. Of these workers, 1500 are employed . The economy enters a recession. Employment falls by 5%, and in addition 0.4% of the labor force becomes discouraged at the prospect of finding..
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