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The government has decided to impose a new excise tax on the sale of cigarettes. suppose that we know the demand for cigarettes is relatively inelastic, but the supply is relatively eleastic. Which group, consumers or producers, will e affected more by the new tax. ( in other words, which group has a larger tax burden when comparing the prices each group pays or receives before and after the tax.
For each of the following, use the concept of revealed preferences to rank the two bundles of goods. If you cannot rank them, explain why. The price of 3 Brooks Brothers suits is $3000. The price of one Anderson and Sheppard suit is $5000. Bruce choo..
q1. 1. at point e in figure 8.4b is mp kr greater or less than mp lw? 2. explain how do you know? 3. use this
"High salaries are essential if we are to have the most capable students pursuing medical careers" Comment- Why or why not?
Explain the important determinants of the Working Capital needs of a firm. Can two firms with different Working Capital achieve the same amount of sales? If so, explain how.
Draw a market equillibrium graph and compute the equillibrium price and quantity in the lumber market. Compute the producer and consumer surpluses in the lumber market. Construction boom in China increases export demand for lumber. the new demand fun..
The batteries carry a 12-month guarantee. What percent of batteries will fail in less than 12 months?
Per capita income in County A is $45,000. Per capita income in County B $38,000. Physician visits average 3.4 per year in County A and 3.2 per year in County B. What is the arc income elasticity of demand for visits?
Consider a market where supply and demand are given by QXS = -16 + PX and QXd = 83 - 2PX. Suppose the government imposes a price floor of $36, and agrees to purchase any and all units consumers do not buy at the floor price of $36 per unit
How did restrictive mercantile policies lead to an early Industrial Revolution in Britain, when they led to several other nations collapses on Continental Europe?
Keeping your money in a bank seems like a good idea. However, from time to time, depositors lose confidence in banks (this happened in summer of 2012 in Greece). If your bank was experiencing a run, would you join in, or would you be confident that t..
The state if Arizona decided to boost its own minimum wage rate by $1.60/hr.This pushed the wage rate earned by Arizona teenagers above the equilibrium wage rate in the teen labor market. What is the predicted effect of this action by Arizona’s gover..
Should mothers of young children be required to work in turn for government assistance? Does the age of the child make a different? What about the number of children? What are issues involved?
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