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Consider a market where supply and demand are given by QXS = -12 + PX and QXd = 90 - 2PX. Suppose the government imposes a price floor of $38, and agrees to purchase any and all units consumers do not buy at the floor price of $38 per unit.Compute the lost social welfare (deadweight loss) that stems from the $38 price floor.
suppose Arnor and Gondor are two very similar countries that started out with identical population, technologies, etc. except that Gondor has a much higher mortality rate due to a more hazardous geographical location.
Compare and contrast your local utility company with a local farmer (corn, soy bean, cotton, etc.). Why does your utility company always operate with price is greater than marginal cost whereby the farmer attempts to produce where price equals mar..
Determine the direction of comparative advantage and the limits to the relative wage rate A and B are the countries, the products are S and T and A has s=6 and T=2, and B has S=15 and T=12
Suppose that the goverment of the city of Udellum, wich has a Baa credit ratng issues a bond with the same time to maturity in a market that is just as liquid as the market for corporate bonds. Suppose that investors have a federal tax rate of 30 ..
The council decides to allow a boat to fish in the lake only if its owner buys a fishing licence. To maximize total profit (of citizens and council), how many groschens should the council charge for a licence?
COUNTRY ANALYSIS 1. Describe the population trends. 2. What is the gross national product and its' trend 3. What are the key imports and exports 4. What are the country's major industries. 5. Describe the political system and legal environment. Do th..
A profit-maximizing monopolist is currently producing 500 units. Its marginal cost is equal to $10, and its price is equal to $20. The monopolist should a. decrease output and increase price if marginal revenue is equal to $5 b.decrease output and ..
The underlying trend of growth in the economy is determined by the growth in the number of workers, the growth in the savings and investment rate.
Microeconomics BACC107, In the study of Microeconomic, the question "How to produce" is one of the basic economic problems (BEPs). Using an example, discuss this concept. In your discussion, you must also discuss the rationale behind the principle o..
The extra flow of information through the Internet is likely to work to the benefit of buyers, pushing prices down. But in Web-based exchanges where there are only a few seller and many buyers
How has the housing market crash affected urban sprawl and what do you think is the greatest problem facing the suburbs, especially if it is a growing area?
For each of the following, is the business a price-taking producer? Explain your answers. A cappuccino café in a university town where there are dozens of very similar cappuccino cafés
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