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In 2010, the world price for raw sugar, 13¢ per pound, was about half the domestic price, 27¢ per pound, because of quotas and tariffs on sugar imports. As a consequence, American-made corn sweeteners can be profitably sold domestically. A decade ago, the U.S. Commerce Department estimated that the quotas and price support reduce American welfare by about $3 billion a year, so, each dollar of Archer Daniels Midland's profit from selling U.S. sugar costs Americans about $10. Model the effects of a quota on sugar in both the sugar and corn sweetener markets.
Using a method similar to the consumer price index, compute the percentage change in the overall price level. Use 2009 as the base year, and fix the basket at 1 karaoke machine and 3 CDs.
Suppose the two countries split the difference between the willingness to pay for computers and the willingness to accept computers. Compute the terms of trade, that is, the rate at which the two countries will exchange computers and shoes.
An office manager is concerned with declining productivity. Despite the fact that she regularly monitors her clerical staff four times each day (9am, 11am, 1pm and 3pm) office productivity has declined 30% since she assumed the helm one year ago.
At a 10% annual interest rate (compounded yearly), what is thepresent value of the cash flows? To receive full credit you mustuse 2 arithmetic gradients. what is the present value of the cash flows
A local video store estimates their average customer's demand per year is Q = 20 - 4P, and knows the marginal cost of each rental is $1.00. How much should the store charge for an annual membership in order to extract consumer surplus
The cost of capturing and storing all CO2 produced by coal-fired electricity generating plants during the next 200 years has been estimated to be $1.8 trillion. At an interest rate of 10% per year compounded monthly
Last month Jones Hat Company sold 100 hats at $10 each. This month it raised the price of hats to $11 and sold 101 hats. This result indicates that another factor, such as income, changed, shifting the demand curve for hats to the right.
Now use your diagram to show how the large tariff would affect the welfare of consumers and producers and government revenues.
Does it really matter if some of the older employees are having a hard time adjusting; aren't they on their way out anyway and they can be replaced by the technology? On balance, what do you feel about the impact of technology?
How do you plan to promote the reading success in your classroom?
A newly graduated engineer bought furniture for $900 from a local store. Monthly payments for l year will be made. Interest is computed at a nominal rate of 6%. What interest is paid in the last month.
The government finances its purchases through lump-sum taxes on consumers, where T denotes total taxes, and the government budget is balanced each period, so that G = T.
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