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The government has placed a $10 per item tax on cat sweaters on the sellers. Below are the price elasticity of demand and the price elasticity of supply. For each question, tell the dollar amount of the tax the buyer will pay and the dollar amount the seller will pay.
Calculate the Marginal Propensity to Consume - Furthermore you know that the marginal propensity to save (MPS)equals 0.4
Suppose that you are on a desert island and possess exactly 20 coconuts. Your neighbor, Friday, is a fisherman, and he is willing to trade 2 fish for every 1 coconut that you are willing to give him. Another neighbor, Kwame, is also a fisherman, a..
Consider the impact of unemployment benefits on the labour market. How is a more generous unemployment benefit likely to affect wage setting, search effort among unemployed job searchers, and the rate of unemployment.
If price discrimination is feasible, which of these pricing approaches would you consider using market segmentation by location or time, two-part tariffs, limit pricing, penetration pricing.
If the government imposes consumption tax on the good that raised prices by $1, by how much will the consumer's surplus change? Show the relationship between EV, CV, and consumer surplus using compensated and uncompensated demand curves. If you your..
Explain carefully why interest rates on each of the following short-term financial instruments will be closely tied to the level federal funds rate: short-term bank CDs, short-term Treasury bills, short-term commercial paper.
The State of Wyoming spends about $300 million dollars per year on higher education, and also provides generous Hathaway Scholarships. Does higher education provide enough positive externalities for that state subsidy to make sense economically.
Toby can produce 5 gallons of apple cider or 2.5 ounces of feta cheese per hour. Kyle can produce 3 gallons of apple cider of 1.5 ounces of feta cheese per hour. Can Toby and Kyle benefit from specialization and trade? Explain.
If a straight line passes through the point x = 12 and y = 4 and also through the point x = 4 and y = 8, the slope of this line is
Elucidate the impact of globalization on domestic governance. Identify and explicate at least three significant factors requiring domestic changes.
Moorea spends all of her income on Mochi Frozen Yogurt which costs $1 per cup. She makes $400 per month but lives in a bad neighborhood and is robbed of half her money 20% of the time. Assume YN and YR represent her consumption of yogurt in cups i..
What is the amount of loans from rest of the world? What is the current account balance? What is capital account balance?
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