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If the government imposes a quantity tax on the consumption of a good, it means that the consumer has to pay for each unit of the good its price plus the tax. For example, if the price of a chocolate bar is $5 and the government imposes a tax of 20 cents on the consumption of a chocolate bar, then the actual price the consumer pays for a chocolate bar is $5 + $0.2 = $5.20. Suppose there are two goods available for consumption, good 1 and good 2, and that the government taxes consumption of good 2 that is in excess of quantity x2 that is, consumption of good 2 up to quantity x2 is exempt of tax. Denote by t the amount of dollars a consumer has to pay for every unity she consumes in excess of x2.
Draw the budget set of a consumer with income m.
Is the slope of the budget line constant?
Estimation of sales from multiple regression models - figuring out the own price elasticity of demand and cross price elasticity of demand - the relevant business decision to increase the total revenue.
Explain how many hours of work is the consumer working. What is her income.
The TiVo video recorder, the iPod music player and the Xbox game machine all owe their existence to the same high-tech innovation: smaller, denser, cheaper disk drives.
To compound the above, Peter knows Ben wants this task done as soon as possible, no longer than six months out and accomplished with little to no headlines. Additionally, Melanie LaFave, Governor's lead counsel, is limited in her knowledge of the ..
Review the GDP data for the last few years from Bureau of Economic Analysis's Website and give a brief summary of the GDP trends over that timeframe and discuss 2or3 events which may have caused these trends.
Consider the following data, which applies to Avataria and Twilightia in the years 1990 and 2010. In both countries the production function in per worker terms is: y = A(k)^1/2(h)^1/2. Country; Year; Output per worker, y; Physical capital per..
Discuss its current status. If possible, current a separate graph for each indicator illustrating the historic trend for each.
Do the estimated coefficients have the required signs to yield a-shaped AVC curve? Discuss the significance using the p-values.
You and a friend are in an Italian restaurant and the owner offers both of you an 8- slice pizza under the following conditions: each one of you must simultaneously announce how many slices you would like to have (i.e., each player i is belong {1,..
60% of the youth between 18 and 30 in Detroit are unemployed, have not completed high school, are at various levels of functional illiteracy, without job skills,
Suppose that, as the chair of the Fed, you decide to "put policy on automatic pilot" and needs that monetary policy follow an established rule.
Explain how could you use the concepts of marginal cost and marginal revenue to maximize profit? What information do you need to determine this.
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