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A. Define producer and consumer surplus, and explain why market equilibrium maximizes welfare.
B. Draw a supply and demand diagram which shows the welfare effects of a tax placed on sellers. Be sure to fully label your graph, and identify the changes in producer and consumer surpluses, tax revenue, and any deadweight loss.
Illustrate with a diagram the market for apartments after the price ceiling is imposed and show on your diagram the excess demand in the market, the consumer surplus, the producer surplus, and the deadweight loss resulting from the price ceiling.
During the recession of 2007-2009, the U.S. economy was experiencing a decrease in home prices and consumer wealth, a credit crisis in the financial markets, and declining consumer and business confidence. What components of aggregate demand were aff..
A company has acquired a paint booth (see prices). The anticipated life for the booth is 14 years but the company plans to depreciate it as a 7 year MARCS property (half year conversion). Determine the book value of the equipment for its first six ye..
Why is their a growing disparity between the rich and poor in the US? What are some of the reasons for this and what should the government do to bring about growing equality with income? Do we as citizens have an ethical responsibility to help the po..
If physicians can gain large per capita wealth effects from state regulation and consumers can gain relatively small per capita wealth effects from state regulation, which of the two groups does the economic theory of regulation suggest will control ..
Explore in particular Elucidate how the two companies' respond to the macroeconomic conditions in terms of their.
What is Creative Destruction and what role does it play in our society? How do subsidies hurt/help businesses?
Draw a Production Possibilities Frontier(s) to represent each of the following situations. The goods in question are ice skates and downhill skis.
With marketers, increasingly adopting more and more refined market segmentation schemes fueled by the Internet and other customization efforts—some critics claim that mass marketing is dead. Others counter that there will always be room for large bra..
How much profit does each firm make? Suppose Firm 2 produced 10 units of output. How much output should Firm 1 produce in order to maximize profit?
Gorton argues that regulating capital ratios cannot prevent a systemic run on banks. The FDIC has never extended protection to uninsured general creditors because this would create increased moral hazard in the banking system.
Critique a human resource article which study compensation (managing compensation, rewarding performance, desinging and administering benefits). The critique must contain the following: -A brief introduction of the article-A statement of the problem ..
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