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1. Consider the market for guns. If the price of bullets increases, how will this affect the market for guns, ceteris paribus?
2. Consider the market for DVDs. If the price of movie tickets increases, how will this affect the market for DVDs, ceteris paribus?
3. Consider the market for fast food. If the price of unskilled labor increases, how will this affect the market for fast food, ceteris paribus?
4. Consider the market for health care insurance. If several health care insurers exit the market, how will this affect the market for health care insurance, ceteris paribus?
Suppose an economy only produces single consumption well. Consider permanent upward shift of production function. Graphically describe the effects on each of following:
Compute the profit-maximising monopoly quantity, price, and profit from serving this single consumer if Barry's Bar charges a constant price per drink rather than using some other pricing scheme. What would the quantity and profit
Many observers believe that the levels of pollutionin our society are too high. Economists argue that appropriate correctivetaxes or tradable pollution rights will resultin efficient pollution reduction. How dothese approaches target the firms that..
Explain why is rising per capita income necessary but not sufficient for broadly reducing poverty and improving human welfare.
Elucidate the difference between economic profits and accounting profits. Using the concepts of relative elasticity and relative inelasticity, explain price elasticity of demand.
The Wall Street Journal reports that the rate on three-year Treasury securities is 5.60 percent and the rate on four-year Treasury securities is 5.65 percent. According to the unbiased expectations hypothesis
Explore how a firm determines the optimal scale of a plant for a given rate of output and why this determination relates to longer run strategies versus current operations. Also, discuss the differences between economies of scale and economies of ..
The Tax Foundation says this is because of economic growth leading to higher incomes and higher taxes.
With the per-unit prices of broccoli (B) and pork rinds (R) equal to $2 and $1, a consumer, George, with an income of $1,000 purchases 300B and 400R. At that point, the consumer’s MRSBR = 3 R/1 B.
Some politicians have proposed changing the way social security benefits are taxed. One proposal would increase the amount of Social Security benefits included in gross income to 100 percent
potatoes cost janice 1.00 per pound and she has 5.00 that she could possibly spend on potatoes or other items. if she
Describe the productivity change for every category also then determine the improvement for labor-hours, the typical standard for comparison.
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