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Suppose that in 2013 PECO generated 100 billion kilo-watt-hours (kwh) of electricity that it provided to its customers at a charge of $.08 per kwh. Suppose that as a result of excessive earnings, the state regulatory commission ordered PECO to reduce its rates from $.08 per kwh to $.07 per kwh. Had the decrease been in effect in 2013, the state commission's economic consultant believed the quantity demanded would have been 103 billion kwh of electricity, providing an increase in consumer surplus of __. What would have been the increase in consumer surplus? (quantify the change in consumer surplus using the same approach used in the slides to determine Lisa's increase in her consumer surplus.)
Compute the optimal price using the arc formula for elasticity. How does the arc formula for elasticity factor in to these equations.
Zaneb is a high-school teacher and is well known in her community for her honesty and integrity. She is shopping for a new car and plans to borrow the money to pay for it from her local bank. Does Zaneb create any moral hazard or adverse selection..
Calculate NI:Consumption 200 billion Depreciation: 25 billion Retained Earnimgs: 12 billion
in a survey of 1000 voters 580 responded passively to a question on state issued bond to cover education
b) What is the current long-run equilibrium price level c) If the economy grows sufficiently at $2 trillion, real GDP remains forthcoming in the long run, and the aggregate demand remains unchanged, what will be the new long-run equili..
Determine the pros and cons of optional strategies to tackle a foreign market, such as acquisition of a local company, direct investment in production
Assume a tax of t=$2 is attached to each unit exchanged in market. calculate the new market equilibrium and the deadweight loss from this change.
Total spending in the economy is equal to consumption plus investment plus government spending plus net exports. If household want to save and thus do not use all their income for consumption, what will happen to total spending
Upon what specific assumptions is this production possibilities curve based?
imagine the world contains only two nations and that one of them is experiencing capital flight. In the diagram, below trace out the effect of this capital flight on the other nation. Indicate whether the real interest rate.
The company has already spent $150,000 on research and development for the drug. The first round of clinical trials has been performed cost $75,000 and the results from the trials were promising. The company is considering whether to proceed with ..
1. economic analysis that takes into consideration linkages between markets is called ? a. partial equilibrium
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