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Suppose that Canada produces 1.0 million bicycles a year and imports another 4.0 million; there is no tariff or other import barriers. Bicycles sell for $400 each. Parliament is considering a $40 tariff on bicycles. What is the maximum net national loss that this could cause Canada? What is the minimum national loss if Canada is a small country that can not affect the world price? (Hint: draw a diagram with supply and demand and put numbers given here on it. Next, imagine the possible positions and slopes of the relevant curves.)
An entrepreneur took a one-month leave of absence. Elucidate how many units did she have to sell To facilitate turn a profit
Explain how does it affect consumer surplus, producer surplus, government revenue, and total surplus. Is it a good policy from the standpoint of economic efficiency.
Elucidate why would new textbook sales fall in the yrs subsequent the release of the latest edition.
Illustrate what is the real GDP in each year, given that the price index has risen from 100 in the base year to 104.5 in Year 1 and up to 108.3 in Year 2.
Describe the characteristics of optimal contracts in principal-agent problems when the agent (manager) is risk neutral.
Based on this example, discuss and defend whether or not big countries such as the United States should be worried about what is happening in small countries such as Greece. Elucidate general conclusions from this case that might be applied elsewh..
This document contains various important questions and their appropriate answers in the subject field of Economics.
why the enrollment in colleges also universities increases at times of economic recession
If David and Ellen live in rent-controlled apartments, Illustrate what is the equilibrium cost for the non-rent-controlled apartments.
Assume you are part of a research team evaluating a proposal to clean up a hazardous waste site.
An existing company is considering expanding into a new product line that will use the same factory as its existing products.
Economic laws are established in order to make successful prediction of the outcome of human action.
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