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Recently there has been discussion in the news about taxing junk food (soft drinks, for example) in an effort to reduce the incidence of obesity in the U.S. Do you think the demand for junk food is elastic or inelastic with respect to price.
Based on your knowledge of the price elasticity of demand, do you think the deadweight loss of a soda/junk-food tax would be relatively large or relatively small? Why? Do you think taxing junk food would be a good idea? Based on your analysis, would it really help reduce the number of obese people in the United States? Explain.
Discuss the economics of Franks question - Why is milk sold in rectangular containers, while soft drinks are sold in round one
Suppose Ralph and Ed have the only store that sells toilet bowls in northern Maine. Their nearest competitor is 211 miles away, and these two men have a reputation for producing high-quality toilet bowls. Graphically illustrate what the market for..
Sandra, a single taxpayer in the 35 percent marginal tax bracket, has $60,000 she can invest in either corporate bonds with a stated interest rate of 9 percent or general revenue bonds issued by her municipality
Maritime Insurance Company offers insurance policies for recreational boats. A typical policy will pay the replacement cost of $25, 000 if the boat is a total loss. If the boat is not a total loss but the damage is more than $10,000, the policy pa..
Discuss specific changes in supply and demand. Examine prior government policies and legislation that exacerbated the impact of the shocks.
Explain how has the introduction of females also minorities in the corporate structure impacted the supply of labor and the economy.
What are the economic impacts of recreational marijuana in Colorado?
1. Using the following demand and supply functions answers the following questions. Qd = 22 - 2p + 0.5Y; Qs = 15 + 4p - 2CI; where Y = income and CI - cost of inputs.
Illustrate what is the difference between a movement along and shift of the demand curve. Show the impact on the equilibrium price and quantity that results.
In some European countries, laws are in place that give a lot of protection to workers and keep them from being unfairly fired. What is your take on these laws ? Give a more insight.
Bank North advertises, “We pay 6.5%, compounded daily.” Bank South advertises, “We pay 6.5%, compounded continuously.” If you deposit $10,000 with Bank South for one year, how much additional interest will you receive?
Presently most British imports come from other European countries. How does this fit in with the changing types of goods that make up world trade.
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