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Suppose a tax of $4 per unit is imposed on a good, and the tax causes the equilibrium quantity of the good to decrease from 2,000 units to 1,700 units. The tax decreases consumer surplus by $3,000 and it decreases producer surplus by $4,400. The deadweight loss of the tax is...... I know the answer is $600, but what I don't know is how to set up the calculation to get this answer.
Compare the incentives of a deficit nation to undergo international adjustment against those of a surplus nation. Determine who would benefit more and explain your reasoning.
Singer Taylor Swift has a monopoly over a scarce resource: herself. She is the only person who can produce a Taylor Swift concert.
Assume that the The World Steel industry wants to expand and that its only option is a merger. Now the industry is confronted with government regulations to oversee the merger.
explores a case for which eco-labeling was used to skirt WTO rulings that force countries to treat products as equal even if the production process violates an environmental rule in the importing countries. Are free trade and environmental sustain..
w suppose that the interest rate falls to 50%, and the household decides not to borrow or lend at alll. Is the household better off or worse off with the higher interest rate?
Consider an economy with three types of drivers: safe (s), inexperienced (i), and crazy (c). There is an equal number of each of these drivers, and their wealth when they do not get into an accident is $324 per person. In any given year, the proba..
many economists feel the inflation rate is overstated. Analyze the impact of the overestimated inflation rate on the economy; be sure to mention which groups benefit and which groups are hurt by the inaccurate estimate of inflation
Choose a market for a good in your area that seems to be a perfectly competitive market. Write four or five substantive paragraphs that describes the market and answers the following questions: Identify the buyers and sellers as well as the goods o..
How does the article support the Simple Circular Flow model and how does the article support the Law of Supply and Demand?
Comcast and Verizon are considering which services to offer customers in the Nashville region.
Few states in the U.S. permit citizens to openly carry handguns. People can save themselves in the case of robberies or harm by using these guns.
Why is it not surprising to find that in the oligopoly which sells basically undifferentiated product like chicken growth hormone all the firms change prices simultaneously, even if there is no explicit price fixing?
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