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Question: The following graph shows the effect of a tax imposed on soft drinks. Use this graph to answer the questions:
a. Which areas in the graph represent the excess burden (deadweight loss) of the tax?
b. Which areas represent the revenues collected by the government from the tax?
c. Would this tax on soft drinks be considered efficient? Briefly explain.
What does this say about the marginal return to labor
Demand relation is a linear function of price and income, use your spreadsheet program to obtain least squares estimates of Mississippi's demand for KBC microbrews.
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A portfolio manager owns a bond worth £ 2,000,000 that will mature in one year. The pound is currently worth $ 1.65, and the one- year future price is $ 1.61. If the value of the pound were to fall, the portfolio manager would sustain a loss.
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