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Consider a modern city where firms are located in the central business district or along a circumferential highway. Congestion is not a problem; everyone travels at the legal speed limit. Suppose that in an attempt to internalize the pollution externalities from auto use, the city imposes a $2 per gallon tax on gasoline. Assume that (i ) everyone continues to drive himself or herself to work and (ii) the tax does not affect the spatial distribution of residences. Will the gas tax increase, decrease, or not affect the fraction of employment in the central business district?
q.given your answer in part b if px would increases by 10 by what percentage would sales decrease? what impact would
Say an organisation is figuring out whether or not it should go ahead with an investment project. The manager of the organisation has been told by his engineers that the project will cost $10 million and can be built straight away. The manager has as..
Sam owns outright (no mortgage payments) two plots of land of equal size in Southern California. One plot is in Victorville (the High Desert) and the other is in the coastal community of Newport Beach. Given that Sam’s calculations were correct on t..
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Two firms compete in an undifferentiated Bertrand market. Suppose that the firms face a demand curve given by P = 60 – Q and both firms have constant marginal cost of 40. What is the market clearing Bertrand price and quantity?
Describe a national model of universal healthcare coverage. Compare the model's methods of funding for healthcare in the United States. Identify which one you think is best by discussing access and quality detail.
Describe the impact of a payroll tax on wages and employment in a competitive industry. Why is part of the tax shifted to workers? What is the deadweight loss of the payroll tax?
What would happen to autonomous consumption if household debt fell and the interest rate rose over the same time period?
How responsive do you think consumers will be to the price change when these fluctuations occur due to changes in supply? Why? Use the various determinants of elasticity to explain your answer. How does the price elasticity of demand for gasoline imp..
How are the BRIC economies alike? How are they different? Describe the process of Chinese reforms from their beginning in 1978 up until China’s accession to the WTO. What were the factors that led to economic reform in India? Why did economic reform ..
The demand for salt is relatively price inelastic, while the demand for pretzels is relatively price elastic. How can you best explain why and elaborate your an
Because of a recent wave of jewelry store robberies, a city increases police surveillance of jewelry stores. The increase surveillance costs the city an extra $500k per year, but as a result, the amount of jewelry that is stolen falls. Specifically, ..
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