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A study finds that leaf blowers make too much noise, so the government imposes a $10 tax on the sale of every unit to correct for the social cost of the noise pollution. The tax completely internalizes the externality. Before the corrective tax, Blown Away Manufacturing regularly sold blowers for $100. After the tax is in place, the consumer price for leaf blowers rises to $105.
a. Describe the impact of the tax on the number of leaf blowers sold.
b. What is the socially optimal price to the consumer?
c. What is the private market price?
d. What net price is Blown Away receiving after it pays the tax?
KROM-FM is currently contemplating a T-shirt advertising promotion. Sales data from T-shirt shops marketing a prototype of the KROM design indicate that Q=1,200-200P Where Q is T-shirt sales and P is price.
The Burrito Barn is considering a price reduction on the Firegut Burrito. Giuseppe, the proprietor of Burrito Barn, has recorded sales data at different price levels over the last year. He is quite confident that no other demand factors, such as c..
Suppose a central bank does not satisfy the Taylor principle; that is, vp is less than zero. Use a graph to analyze the impact of a supply shock.
Payments to the fund will be made quarterly, starting theee months from now. If the interest rate for the sinking funs is 8% compound quarterly, how much will each deposit be?
Explain the concept of natural capital. Why is the World Bank concerned about protecting the natural capital of developing countries? How would you characterize the investment climate in India?
publishing house uses 400 printers and 200 printing presses to produce books. a printers wage rate is 20 and the price
Sketch the two projects NPV profiles.
According to a Honda press release on October 23, 2006, sales of the fuel-efficient four-cylinder Honda Civic rose by 7.1% from 2005 to 2006. Over the same period, according to data from the U.S
identify the following cpus 1 the cpu that resides on a computer that you own or a computer that you would
Identify the government department that compiles the statistics on unemployment. About how many business firms in the United States are proprietorships?
A manufacturer of outdoor clothing makes wax jackets and trousers. Each jacket requires 1 hour to manufacture, whereas each pair of trousers takes 40 minutes.
Suppose that when the average college student's income is $10,000 per year, the annual quantity demanded of Patty's Pizza is 50 and the annual quantity demanded of Sue's Subs is 80.
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