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Suppose the tax on liquor is increased so that the tax goes from being a "medium" tax to being a "large" tax. As a result, it is likely that:
a. tax revenue increases, and the deadweight loss increases.
b. tax revenue increases, and the deadweight loss decreases.
c. tax revenue decreases, and the deadweight loss increases.
d. tax revenue decreases, and the deadweight loss decreases.
Draw his budget constraint in terms of S and T. What is the slope of the budget constraint and how does it relate to the relative price.
Consider a closed economy which can be characterized by the following equations: C = 400 + 0.8YD I = 600 + 0.1y- 1000r G = 300 T = 125 (M/P)d = 0.2Y-6000r (M/P)= 400 a. Solve for the goods market equilibrium and state the equation for the AD and IScu..
Illustrate what is the quantity of burgers demanded in equilibrium.
Illustrate the effect of captial formation by comparing the production possibilty curves, at the present time and ten years in the future, for two economies.
Bud has very limited store space and has decided to limit his product line to one brand of beer, choosing to forego the snack food lines that normally accompany his business.
Elucidate what prices he should charge in two markets. Illustrate quantities be should sell in the two markets.
Draw a supply- demand diagram of the federal funds market and show the effects of a Federal Reserve Purchase of $85 billion in US Treasury Notes during a Quantitative Easing Campaign after the Fed has already lowered its Fed funds target to 0 - .25%.
The component of Planned AE (the quantity demanded of GDP) MOST sensitive to a change in interest rates is....
Suppose that during the past year tv fell from $2000 to $1800 per tv sales increased from 700000 to 800000 tv. calculate elasticity of demand.
What are the factors that affect pay differentials? How does each factor increase or decrease relative wages?
q.two retail rms compete in costs in a downstream market in which base demand as well as is given by pr 1-q. the rms
Suppose Katie, Kendra, and Kristen each purchase a particular type of cell phone at a price of $80. Kate's willingness to pay was $100, Kendra's willingness to pay was $95, and Kristen's willingness to pay was $80. For the three individuals together,..
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