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To meet its commitments under the Montreal Protocol, the United States implemented certain market-based policy instruments, including an excise tax on ozone depleters. Consider the following market for CFC-12 before the excise tax is imposed, where P is price per pound.
Demand : Q ¼ 18:40 - 0:5P Supply : Q ¼ 10:00 þ 2:5P
Now assume that a 60 cent excise tax is used, which shifts the supply curve to Q′ = 8.50 + 2.5P.
a. Find the equilibrium price before and after the tax is implemented.
b. What do you conclude about who bears the primary burden of the tax-buyers or sellers? Briefly explain the economic sense of this out- come in this particular context.
The difference in damages between the two fuels,
Define economies of scale. Is there evidence of economies of scale in the airline industry. Consider Low-Cost-Carriers. In large commercial aircraft manufacturing
Economic fluctuations are fluctuations in the level of economic activity, relative to a long-term growth trend.
Explain the chain of analysis from payroll to total points and then on to total points and revenue. What other factors might affect these relationships that are outside of the data looked at in this project?
This result proposes that private parties (consumers and producers) can solve the problem of externalities on their own. A tax imposed on imports is called:
Presume that banks desire to hold no excess reserves, the reserve requirement is 5% and a bank receives a new deposit of $1,000.
Assume a decrease in consumers' incomes causes a decrease in the demand for chicken and an increase in the demand for potatoes. Which good is inferior and which is normal? Explain your reasons.
Assume that the technology of producing widgets is that every company entering the market has the same total cost curve, as follows; TC=1000+5Q+0.1Q^2
Current Values and Ethics Article
What happens to the exchange rate of the Norwegian krone against noneuro currencies? How is Norway affected? How does the size of this effect depend on the volume of trade between Norway and the euro zone economies?
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Sleak Teak builds yard furniture using domestic hardwoods and (in a smaller shop) knick-knacks form the same sort of wood. Although hardwoods were readily available in the past, recently they have become harder to obtain. Consultation with the man..
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