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Question
The demand curve for gardeners is GD = 19 - W, where G = the number of gardeners, and W = the hourly wage. The supply curve is GS = 4 + 2 W.
a. Graph the demand curve and the supply curve. What is the equilibrium wage and equilibrium number of gardeners hired?
b. Suppose the town government imposes a $2 per hour tax on all gardeners. Indicate the effect of the tax on the market for gardeners.
What is the effect on the equilibrium wage and the equilibrium number of gardeners hired?
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The Einstein Bagel Corp. offers a frequent buyer program whereby a consumer receives a stamp each time she purchases one dozen bagels for $6. After a consumer accrues 10 stamps , she receives one dozen bagels free. This offer is an unlimited offer, v..
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Firms apply marginal analysis to maximize the following production goal. The market economy would produce too? _______ healthcare because the marginal social benefit from healthcare? _______ the marginal benefit perceived by its consumers.
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ABC, Inc., is considering purchase of a new equipment. The expected sales are expected to be $5,535,496. The annual cash operating expenses are expected to be $3,877,056. The annual depreciation is estimated to be $567,967 and the interest expense..
How much interest is payable each year on a loan of $1000 if the interest rate is 9% per year when half of the loan principal will be repaid as a lump sum at the end of 3 years and the other half will be repaid in one lump-sum amount at the end of 6 ..
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