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When the buyer bears the bigger burden of tax, how is supply (elastic/inelastic)? Draw and show with boxes and appropriate labeling who bears which portion of taxes. When does a price ceiling become binding and what does it create? Show in the diagram.
Explain your answer statements be true at the same time. The unemployment rate in Tappania is higher now than it has been in 50 years.
Illustrate what might cause the world interest rate to rise.
Two dry cleaners are located on a street of length. The firms do not make the same profit, verbally describe why this is the case.
You are given the following information about the economy of Nocoin: The banks have submitted of $300 billion, two thirds of which is in deposits with the central bank.
Explain also by using graphs welfare off policy measures on consumer and producer surplus and net gain or loss to society.
Explain why the food stamp program can have the same effect on the consumption pattern and well-being of recipients as an outright.
year on television advertising campaigns, promoting their beer brands. Obviously, if one firm is advertising its brands heavily, the others must also advertise to defend their market shares.
James earned $10,000 in income in his new job in Nova Scotia after the move and his employer paid him $1,000 specifically to cover the cost of the move, but doesn't specify what it can be used for.
Explain how large a decline in the value of bank assets would it take to reduce this bank's capital to zero.
Illustrate is the income elasticity of demand for yo-yos. At what price will total revenue realized from their sale be at a maximum.
Michelle spends all her money on food and clothing. When the price of clothing decreases, she buys more clothing. Does the substitution effect cause her to buy more or less clothing.
Pharmaceutical drugs have an inelastic demand, as well as computers have an elastic demand.
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