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If government wishes to tax certain goods, it should tax goods that have inelastic rather than elastic demand. Whatis the rationale for this statement?
A table saw costs $175 at a local store. You may either pay cash for it or pay $35 now and $12.64 a month for 12 months beginning 30 days hence. If you choose the time payment plan, what nominal annual interest rate will you be charged
A company wants to set up a new office in Swaziland. The corporate tax rate there is 15% for the first $50K profits, 25% for the next $25K, 34% for the next $25K, and 39% for anything over $100K. Executives estimate, for the first year
A loan of $20000 is to be financed to assist a person's colllege education. Based upon monthly compounding for 48 months, the end-of-the-month equal payment is quoted as $520. What nominal interest rate is being charged
Linear equations for the consumption and saving schedules take the general form: C = a + bY and S = - a + (1 - b)Y where C, S, and Y are consumption, saving, and national income, respectively. The constant a represents the vertical intercept.
Assume the following data describe the gasoline market: Price per gallon $2.00 2.25 2.50 2.75 3.00 3.25 3.50 Quantity Demanded 32 30 29 28 22 21 20 Quantity Supplied 16 20 24 28 32 36 40 (a) What is the equilibrium price
What sum should you deposit into an account to yield 20 year end payments, starting with $10,000 at the end of the first year and increasing by 4% each year at an interest rate of 8% compounded quarterly.
Assume (as usual) the representative consumer maximizes utility. Find the consumer's optimal consumption and leisure decision. Plot this representative consumer's labor supply function. Would a decrease in the tax rate t affect the optimal amount ..
Mac Rowe doesn't sweat the petty stuff. In fact, he just cannot detect small differences. He consumes two goods, x and y. He prefers the bundle (x,y) to the bundle (x',y') if and only if (xy - x'y' > 1) . Otherwise he is indifferent between the tw..
If the fixed cost is ‘sunk' and she cannot increase her output in the short run, should she shut down?
a. Is the assumption that more is better satisfied for both goods b. What is the MRS for this utility function c. Is the MRS increasing, decreasing, or staying concstant as the consumer substitutes X for Y along an indifference curve
Write paragraphs on needs and wants of ancient communities and how they exchanged their goods:Your answer must include the ff aspects
1. suppose the demand for a product is given by p 50 - q. also the supply is given by p 10 3q. if a 12 per unit
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