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Suppose the market for cigarettes is characterized by the following information:Qd = 70 - 5P [Demand] Qs = 3P - 10 [Supply]Suppose the government imposes a sales tax of $2 per unit.Calculate the magnitude of the consumer surplus and producer surplus in the pre-tax equilibrium.[Note: P = price per unit; Qd = thousands of units demanded; Qs = thousands of units supplied]
How much percent can we expect the price of rental apartments to rise after the law is enforced, if we know that we expect an additional rise in demand for rental apartments which will cause an additional 20 percent rise in the number of apartment..
Assume that a national restaurant firm called BBQ builds 20 new restaurants at a cost of $1 million per restaurant. It outfits each restaurant with an additional $300,000 of equipment and furnishings
If the ratio of currency to transaction deposits is 2, the ratio of nontransaction deposits to transaction deposits is 5, the ratio of retail money-market funds to transactions deposits is 1, the ratio of required reserves to transactions deposits..
Suppose that when a hotel charges $50 per night, 200 rooms are rented and when they charge $75 per room, 150 rooms are rented. Assuming a linear relationship between x, the number of rooms rented and y, the price charged per room.
A city government is considering two types of town dump sanitary systems, as shown below. Select the better system based on BC analysis at 8% social discount rate (same as MARR). Design A Design B Initial investment $400,000 $300,000
Interpret the coefficient of LOG (AVGINC). Are its sign consistent with your expectations and determinant factors that explain students' performance in fifth-grade tests. We observe a sample of 420 districts in California
On the basis of the information regarding the risk involved in the two projects, you come up with the following probability distributions for the projects:
At the end of the 8-year planning horizon, the mixer will have a salvage value of $5,000. If the mixer is replaced, a new mixer will require an initial investment of $375,000. At the end of the 8-year plaaning horixon, it will have a salvage value..
A firm faces the following average revenue (demand) curve: P = 120 - 0.02Q where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by C = 60Q + 25,000.
Suppose nominal GDP in 2005 was $14 trillion, and in 2006 it was $15 trillion. The general price index in 2005 was 100, and in 2006 it was 103. Between 2005 and 2006, real GDP rose by what percent
Market research at Apple Corporation has shown that the demand function for its new iPhone is as follows: QA = 3 - 0.02PA + 0.0002I + 0.01PS where QA is the quantity demanded (in thousands) of iPhones, PA is the price of an iPhone, I is consumer i..
A manufacturer of off-road vehicles is considering the purchase of dual -axis inclinometers for instalation in a new line of tractors. The distributor of the inclinometers is temporarily overstocked and is offering them at a 40% discount from the ..
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