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In the market for SO2 pollution permits, suppose that a key component to technology for reducing SO2 emissions comes from China, and that part needs to be replaced every year. And, suppose that import tariffs are increased for Chinese imports. Demonstrate how that would affect the market for SO2 pollution permits.
q1. manipulate demand of price elasticity. suppose that 50 units of a good demanded at a cost of 1 unit. a reduction
Using a demand function of P = 7 – 2Q and a supply function of P = 4 + Q, and when adding an unit excise tax of $1.50, determine the following: Who really bears the burden of this tax? I. Consumers II. Producers or III. Both. How much of the tax burd..
Suppose the welfare benefit formula is Benefit=$4,800-0.67(wages>$6,000) what is the marginal tax rate on The first 6,000 of wages? Wages above 6,000 How large is the benefit if wages equal $0? $4,000 and $4,800, $9000 and 7,000? What is the breakeve..
Begin thinking of a business problem that could be solved with a technology solution for a company or organization you are familiar with
There is a duopoly of beer producers, Biller and Moors, who produce identical hoppy ales, and each have marginal costs of $100 per keg. Assume there are no fixed costs. What are the best response curves in Cournot Oligopoly for these two producers? W..
According to studies undertaken by the US Department of Agriculture, the price elasticity of demand for cigarettes is between – 0.3 and – 0.4 and the income elasticity is about + 0.5. Suppose Congress, influenced by studies linking cigarette smoking ..
Explain why do we consider a business-cycle expansion different from long-run economic growth. Why do we care about the size of the long run growth rate of real GDP versus the size of the growth rate of the population.
Assume that a nation’s marginal propensity to consume is 0.9, and that its potential GDP exceeds its actual real GDP by $5000. By how much should that nations’ government change taxes in order to completely close that GDP gap?
Wolfe and Baker are the only two firms producing door stopers because of such a small market in their area. Both firms have a marginal cost (MC) of $8 and no fixed cost (FC = $0). The demand for door stopers is given by function P = 32 - Q, where P i..
Which of the following is not a true statement about discrimination I the US labor market
Illustrate what money supply should the Fed set in year 2009 if it wants to keep the price level stable.
How can we get sustained growth in Solow model? Is it possible to achieve it by increasing saving? Or do we need something else? What is MPS in Solow model? What is MPC? Define investment per capita (in terms of capital per capita) in Solow context.
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