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The demand for cigarettes is price inelastic, but not perfectly inelastic. The supply of cigarettes is elastic, but not perfectly elastic. If there were no price controls or other complicating regulations, what would a model of supply and demand therefore predict if a high cigarette tax were removed?
The price consumers pay would fall by the full amount of the tax.
The price consumers pay would fall by most of the amount of the tax.
The price consumers pay would be unchanged.
The price consumers pay would fall by less than half of the tax amount.
Both banks that each of their entire $20 million loan package will be written off as bad loans. Will any of the two banks survive this crisis? Explain carefully.
You arranged the subsequent information to use in evaluating the financial feasibility of starting your own agency.
Crusty Cakes sells donuts in Eastown and Westown. Its total costs are given by TC = 10(Qe+Qw). The demand in each neighbourhood is given by Qe = 100 - 2Pe and Qw = 100 - Pw. If Crusty price discriminates between the two neighbourhoods, how much are i..
Researchers have found a hybrid of corn that is cheaper to grow. This technological break through
For an annual market interest rate of %9, calculate the economic life of the machine. Show the results of your calculations on a graph.
Elucidate what other types of variables should be considered when determining what is reasonable in terms of maintenance expense.
Find the monopolist's profit-maximizing quantity and price
Illustrate what is the expected annual demand also the total revenue corresponding to your recommended price
Describe the differences between shortages and scarcity. In answering this question you should think difference between the short run and the long run in economic analysis.
Consider a production technology that takes three inputs: capital (K), labor (N ), and materials (M ). The production function is given by Y = AKαNβ Mγ , where α, β, γ > 0 and α + β + γ = 1. For this production function,
q1. research the current demand for a good or service of your choice. collect information that will affect the demand
A major state university in the South recently raised tuition by 12%. An economics professor at this university asked his students, "Due to the increase in tuition, how many of you will transfer to another university.
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