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1. What is meant by the incidence of a tax? How is the incidence of an excise tax related to the elasticities of supply and demand in a market?
2. In the competitive market for hard liquor, the demand is relatively inelastic and the supply is relatively elastic. Will the incidence of an excise tax of $T be greater for consumers or producers?
a)what is equilibrium level of national income using table above b)at the equilibrium level of national income what will consumption expenditure be c)at the equilibrium level of national income what will the levelof saving be
In a Markov Switching Model, what is the difference between increasing the number of regimes and increasing the order of the Markov chain? Which one will you choose to improve the forecasting performance of a first-order Markov switching model wit..
Let X denote the number of rainy days on the coming weekend. Suppose that there is a 20% chance of rain on Saturday and 50% chance of rain on Sunday. Assume that rain on Saturday and rain on Sunday are independent events, so that Prob(rain on Satu..
what is the value of consumer surplus in this market?
You would like to estimate the effect of police size on city-level crime on a cross-section of cities. Does the estimated 0 coefficient mean that police size has no effect on crime? What assumptions should a valid IV satisfy in this case
An engineering student bought a $75 bicycle and agreed to pay for it with a single $85 payment at the end of six months. Assuming semi-annual compounding, what is the annual, effective interest rate
Be sure to use the long run industry standards in your essay.
A company is considering purchasing a fleet of delivery vans which are available with either a diesel or gasoline fueled motor. The gasoline powered van has an initial price of $29,750, the diesel powered one costs $32,250. Both vehicles have a sa..
Economic 101 The supply of luxury boats is perfectly elastic, the demand for luxury boats is unit elastic, and with no tax on luxury boats, the price of luxury boats is $1 million and 240 luxury boats a week are brough. now luxury boats are taxed ..
Movies and videos provide opportunities for critical reflection and the development of media literacy. This activity will provide you with the opportunity to practice being a critical consumer of films as a form of media.
Describe how a car rental agency would calculate the price at which it rents cars, and relate your description to the equation for rental cost given in the text.
calculate the demand elasticities for the shifted points.
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