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The elasticity of demand for a product depends upon the.....- Manufacturers costs- availability of substitutes, -availability of raw materials- amount the manufacturer is willing to produce? WHY?
Suppose the government imposes an ad valorem tax on coal producers of 7% of the sale price. What is the competitive equilibrium in the absence of the tax? What is the competitive equilibrium with the ad valorem tax? What is the change in consumer sur..
Suppose, alternatively, that leisure and consumption goods are perfect substitutes. In this case, an indifference curve is described by the equation i = al + bC, where a and b are positive constants, and u is the level of utility. Show what the consu..
Politicians are often heard saying that tuition at state universities should be kept low "to make education equally accessible to all residents of the state, regardless of income." Think about the flu shot in the context of a public good. What are th..
Do you favor tariffs and quotas by the U.S. on international trade? In what circumstances? What kinds of products? And why? Are you concerned about retaliatory tariffs and quotas as a result of our action? Are there economic-analytical consequences f..
Donna buys goods X and Y. She can just afford the bundle X=6 and Y=11. She can also afford X=12 and Y=8.Each of these bundles exhausts her income. Draw Donna's budget line. What is the ratio of the price of x to the price of y? If Amy spent her entir..
Suppose a gardener produces both tomatoes and squash in her garden. If the opportunity cost of one bushel of squash is 2/5 of a bushel of tomatoes, then the opportunity cost of 1 bushel of tomatoes is:
What are some examples of the financial crisis in Greece and the potential market problems because China's economy is fueled by construction of cities that remain unoccupied? We need to discern the financial condition of the world and look at dollars..
Avocado farmer, Mrs. Henny Brown is worried about wealth transfer also unjust taxation.
An asset with a first cost of $240,000 three years ago is sold for $285,000. The asset was depreciated by the MACRS method and has a book value of $69,120 at the time of sale. Determine the amount of the capital gain, if any, and the amount of the de..
What is the evidence of wrongdoing here How does business use politics here Is this government failure Is this market failure Who benefits and how Who loses What is the role of the media
Suppose that the U.S. government decides to charge beer consumers a tax. Before the tax, 15 billion cases of beer were sold every year at a price of $7 per case. After the tax, 9 billion cases of beer are sold every year; consumers pay $10 per case (..
What happens if the price floor is above the equilibrium? and what happens when price ceiling is below the equilibrium?
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