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The inverse demand function for grapefruit is defined by the equation p = 317 − 6q, where q is the number of units sold. The inverse supply function is defined by p = 5 + 6q. A tax of $48 is imposed on suppliers for each unit of grapefruit that they sell. When the tax is imposed, the quantity of grapefruit sold falls to
a. 20.
b. 18.
c. 22.
d. 26.
e. 24.
A paper mill has leaked a toxic substance (chlorine) into the ground. Fixing the leak was very expensive so the paper mill chose not to fix the leak. Once local residents and local government discovered that the toxic was contaminating local water su..
Explain why do cattle ranchers slaughtering a large number of newborn calves and burying them in mass graves rather than transporting them to markets.
Will a monopolist's total revenue be larger with second-degree price discrimination when the batches on which it charges a uniform price are larger or smaller? Why?
Elucidate how does the real wage rate at point c compare with the real salary rate at point a. How do nominal wage rates compare at those two points.
Elucidate the concepts of Comparative and Absolute Advantage. Compute the opportunity cost for each country.
Suppose the Federal Reserve Bank adopts expansionary monetary policy. Using the graph of supply and demand for the market of short term Treasury securities, show graphically and briefly explain what happens to the price of short term treasury securit..
An increase in the price of sodium carbonate, a chemical compound used in detergents will:
What were factors that caused ex-slave states in the south lag behind the north in participation in this acceleration of industrialization?
Be sure to clearly indicate what happens in the market for loanable funds, to net capital outflow, and in the market for currency exchange.
Illustrate what are factors that influence supply of loanable funds and the factors that influence demand for loanble funds.
The steady-state rate of unemployment is U/L = s/(s+f). Suppose that the unemployment rate does not begin at this level. Show that the unemployment rate will evolve over time and reach this steady state. (Hint: Express the change in the number of une..
At what prices is the demand elastic? In what price interval is the demand inelastic? How does revenue change from the elastic to the inelastic zone of the demand?
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