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Q1. In 2009, it was proposed that the state of Nevada create an entertainment tax that "would require the state's 25 legal brothels to give the state some money on a per-transaction basis" [Friess, 2009]. Discuss the likely incidence of such a tax. Use an appropriate diagram as the basis for your discussion.
Q2. The owner of an Italian restaurant has just been notified by her landlord that the monthly lease on the building in which the restaurant operates will increase by 20 percent at the beginning of the year. Her current prices are competitive with nearby restaurants of similar quality. However, she is now considering raising her prices by 20 percent to offset the increase in her monthly rent. Would you recommend that she raise prices? Explain.
q.assume that we have a expenditure function of the form c 220 0.9timesyp where yp is permanent disposable income.
the impossible trinity refers to the idea that a country can simultaneously pursue only two of the three following
The success of the apple ipad leads more firms to begin producing tablet computers. In the six months following the japanese earthquake and tsunami in 2011, production of automobiles in japan declined by 20 percent.
Illustrate what price also quantity would prevail after the imposition of the tax
Depend on this information, which market structure best characterizes the industry in which Forey competes.
Using the concept of net present value also opportunity cost, explain when it is rational for an individual to pursue
There are no gains from reducing class size below 20 students, the relationship is constant in the intermediate range between 20 and 25 students, and there is no loss to increasing class size when it is already greater than 25."
Copiers cost about twice as much as workers. Would you recommend they hire another employee or buy another copier?
Convert the production function into its normal form. Illustrate what is the MRTS, if price of labour is $120 and the price of capital is $200?
Unusually good weather which improves crop production also a major oil discovery are examples of unexpected supply shocks in the economy
Elucidate Illustrate what would happen if an outside agency Concluded the prices eBay could charge.
how must you consider the issues regarding diminishing marginal returns and economies of scale.
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