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Question: In which of the following situations can you say, without further information, that consumer surplus decreases relative to the market equilibrium level?
a. Your state passes a law that pushes the interest rate (i.e., the price) for payday loans below the equilibrium rate.
b. The federal government enforces a law that raises the price of dairy goods above the equilibrium.
c. Your city passes a local property tax, under which buyers of new houses have to pay an additional 5 percent on top of the purchase price.
d. The government lowers the effective price of food purchases through a food-stamp program.
What are (a) the advantages and (b) the disadvantages of cost-plus pricing? (c) Why is incremental cost pricing the correct pricing method? Why is full-cost pricing equal to it?
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There are two goods in the economy, anchovies (a fish) and bananas (a farm product). Draw the economy's production possibilities before and after a natural disaster that lowers the banana harvest but does not affect anchovies.
langley clinics inc. buys 400000 in medical supplies each year at gross prices from its major suppliers consolidated
What are some of the key success factors that might affect implementation? What are some of the barriers that may adversely impact implementation?
Consider the following demand schedule. Does it apply to the perfectly competitive firm? Calculate marginal and average revenue.
Which of the following is an example of an external cost?A. secondhand smokeB. increased gas prices for drivers of SUVsC. the cost you pay your plumber to install a new hot water heater
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A group has chartered a bus to Atlanta. The driver costs $200, the bus costs $500, and parking in Atlanta will be $90. You have already paid $700 to reserve the bus and a driver
How does the increase in money supply affect consumer spending and investment? How does it affect the firm or organization you work for?
the price level and the money supply over the business cycle both in terms of correlation, magnitude and lead vs lag. Give the economic intuition of the results on consumption, investment, productivity, wages and price levels.
How society manages its scarce resources and benefits from economic interdependence. Why the demand curve slopes downward and the supply curve slopes upward.
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