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Suppose an oil embargo results in a 20% reduction in the supply of gasoline in the U.S., and the price elasticity of demand for gasoline in the U.S. is .75. Further suppose that the pre-embargo price of gasoline is $1.80 per gallon
What will the post embargo price of gasoline be?
At the competitive market equilibrium A.The size of the external cost is Pm-P0 B.The size of the external benefit is Pm-P0 C.The size of the external cost is Pn-P0 D.The size of the external benefit is Pn-P0.
1. explain why work done at home is not incorporated however housing services that are also done at home are
Marty ordered 100 reams of colored construction paper for his after-school art workshops. Bulk construction paper is shipped in 12 ream bundles (the industry standard). The shipment comes and Marty opens the nine bundles (108 reams). Can he return th..
Etisalat and Du are duopolists. If they form a cartel between themselves, then what will happen to price and output in the market. Discuss your answer with a relevant diagram.
Dr. Frankenstein graduated from PSU in 2009 and entered the labor market seeking for a position. At the beginning of 2010 he found his first job in North Pole. But due to lack of skills required, he lost his job at the beginning of 2011. What are the..
The World of Videos operates a retail store that rents movie videos. For each of the last 10 years, World of Videos has consistently earned profits exceeding $28,000 per year. The store is located on prime real estate in a college town. What is the o..
We negotiate everyday establish your best alternative to a negotiated agreement (BATNA) and identify your counter parties BATNA for a negotiation.
For contribution, find an article, book, video, or website that relates to a topic in the relevant part of the course.
Which of the following is included in the calculation of GDP? The purchase of a new edition of a foreign textbook that was produced in a different nation. The purchase of ink and paper supplies by a textbook company for the production of new textbook..
Consider a three-period model of household choice. The real interest rate is 4 percent. A household wants to have $10,000 available for consumption during last period of life (retirement). Using the household’s wealth constraint, how much does it hav..
Problem: Consider a monopolist who has a constant marginal cost of MC = 20. Find the profit-maximizing quantity and price if the inverse demand curve is P = 620 - 25Q.
What would be the equilibrium price? What is the equilibrium quantity? Calculate the deadweight loss created by the tax.
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