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Consider a market with a demand curve of P=10-Q and a supply curve of P=Q. Before the imposition of a tax, equilibrium quantity is 5, and equilibrium price is $5 (verify this). If a tax of $5 per unit is placed on this market, quantity traded falls to 2.5 units. Calculate the deadweight loss created by the imposition of this tax. Hint: a carefully drawn diagram will help you a lot.
Two identical countries, Nation A and Nation B, can each be described by a Keynesian-cross model. MPC is .9 in each nation. How much is government purchases multiplier for each nation.
Assume a firm has production technology given by f(L,K) = L^1/3 K^1/3. Assume pK = 1 = pL and compute the firm’s short-run and long-run cost functions. Assume a firm has production technology given by.
Suppose the Council of Economic Advisors (CEA) hired you as an Economist (Economic consultant). The head of the council tells that she believes the current unemployment rate of 9% is too high. They would like to increase real aggregate output (RGDP)...
An emissions fee is paid to the government, whereas an injurer, who issued and held liable, pays damages directly to the party harmed by an externality. What differences in the behavior of victims might you expect to arise under these two arrange..
What percent of the tax is borne by buyers. If income rises to $40,000, how much will tax revenue rise.
q. assume you are a typical consumer and expect to work for 40 years from this point onward and to live for 10 years
Find out the ticket price that maximizes revenue. Find the profit-maximizing expenditure on players and the profit-maximizing fraction of games to win.
A decrease in the government's budget deficit ______ the real interest rate and ______the equilibrium quantity of national saving.
The average price of red stubble is about $8 per kilo also the fisher people's revenues for catching red stubble immediately cover their costs.
Explain your answer thoroughly. Illustrate Monetary Policy Tools should the Federal Reserve use to fight inflation. Describe them thoroughly.
q. 1. briefly summarize the ingredients determinants of economic growth.2. what phase of the business cycle is the u.s.
Illustrate what is the risk premium on the market. Illustrate what is the required return on an investment with a beta of 1.5.
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