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Question: In the chapter, most of the taxes we discussed were equal to a certain dollar amount per unit. In this case, a tax on sellers results in a parallel upward shift of the supply curve; a tax on buyers results in a parallel downward shift of the demand curve. In reality, however, many taxes are expressed as a percentage. Graphically, how would you show a 100% tax on the sellers of a good? How would you show a 100% tax on the buyers of a good? One of the results of this chapter is that it doesn't matter on whom the tax is levied; the result is the same. Show graphically that this also applies to percentage taxes.
Electric utilities often practice second-degree price discrimination. Why might this improve consumer welfare? Second-degree price discrimination might improve consumer welfare because, compared with single-monopoly pricing,
Roughly speaking, a merger between two firms is legal:
Is there sufficient evidence to claim that there is a difference in the average amount spent per trip on weekends and weekdays? Use α = .05. What is the attained significance level?
Occasionally a decision is sensitive to the way it is structured. The following problem shows that leaving out an important part of the problem can affect.
As increases in income cause a chain reaction of spending by many business and individuals.
What is the total revenue for U.S. wheat farmers in 2006 and 2007 and calculate the price elasticity of demand for winter wheat.
Choose one of the topics listed below to write a 3-4-page research paper. Research activity paper will be graded according to the criteria.
suppose the local market for cigarettes is made up of the following people.type a qa 20 - ptype b qb 30 - 2ptype c qc
Consumer expenditure plans is an example of a forecasting method. Which of the general categories best described this example?
Determine the profit maximizing ticket price for the theater. What is the price elasticity of its demand at this price? What is the elasticity of its demand with respect to advertising?
How does an increase in an excise tax on cars affect the supply of cars. more cars will be made or fewer cars will be made or else.
What is the fundamental source of transition dynamics in our AS/AD framework? Why does the economy take several periods before returning to its steady state.
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