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1. The marginal benefit (demand) curve for pollution for an industry is P=100-4*Q, where Q is emissions in tons. The current emissions tax (price) for pollution is $40/ton. Regulators are curious if a 10% decrease in the pollution tax will lead to a disproportionate percentage increase in emissions. You calculate the elasticity of pollution demand and conclude (choose one):
a. Demand is elastic. A reduction in the tax will lead to a disproportionately large increase in emissions.
b. Demand is elastic. A reduction in the tax will lead to a smaller than proportional increase in emissions.
c. Demand is inelastic. A reduction in the tax will lead to a disproportionately large increase in emissions.
d. Demand is inelastic. A reduction in the tax will lead to a smaller than proportional increase in emissions.
PARAMETERS FOR ASSESSING ECONOMIC REFORMS: Let it be clearly understood that liberalisation, privatisation and globalisation are means with the help of which the growth proces
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Consider the following: The city council has just approved the construction of a water park in your town. You are responsible for studying the impact of the new water park on the l
#questASSIGNMENT #1 The demand function for Product X is given by: Qdx = 80- 2Px- 0.05P²x -0.2Py + 4Pz + 0.01I+ 2A Where: Px Price of good X $120.00 Py Price of related good y $100
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The accountants keep all the business transactions and records of a sole proprietorship separate from the business owner''s personal transactions and For legal purposes a sole prop
The Efficiency of a Competitive Market *? When an competitive markets generate an inefficient allocation of the resources or market failure? 1) Externalities Costs
Problem 1: i) Distinguish between the different types of concentration measures. ii) Derive and explain the Dorfman and Steiner (1954) condition for optimal advertising.
how to solve Min (x+y/2, 2y+x, 3x)
what is the basis of marginal utility
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