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Problem
1. Suppose the United States maintains a price floor for spinach. Why might this policy decrease revenues for spinach farmers?
2. Suppose Colombia maintains a price floor for coffee beans. What will happen to the size of the deadweight loss if the price floor encourages new growers to enter the market and produce coffee?
Are people gigging because that is the only thing that they have been able to find in a stressed economy? Are they making enough to not only get by but to thrive? Are they paying taxes on this income?
The elasticities of demand and supply are crucial in determining how the burden of a tax (or the benefit of a subsidy) is divided between buyers and sellers.
Effect on Equilibrium of a Good or Service and Effect on Economic Indicators - The one event that you'll pick must affect the equilibrium of a good or service within Canada in some way.
The Mechanical Engineering department of Michigan Technological University has a student team that is designing a formula car for national competition.
explain arthur laffers theory of tax rates relative to tax revenue. what is the effect of a tax on the deadweight loss?
Draw the Supply and the Demand curves and find the equilibrium price and quantity. Calculate consumer surplus, producer surplus, and the dead-weight loss. Name three changes that would cause the demand curve to shift in this market
When I trade futures and options am I purchasing a form of insurance or am I just speculating? How would you distinguish between insuring yourself?
A hospital would replace five personnel that currently cover three shifts per day. 365 days per year. Each person earns $35,000 per year. Company-paid benefits and overhead are 45% of wages. Money costs 8% after income taxes.
A new milling machine with an 8-year life will cost Brake-O-Mastic $48,000. Net revenues for the 8 years are $12K, $14K, $15K, $16K, $10K, $8K, $8K, and $6K.
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Consider an industry described as a duopoly consisting of two symmetric firms producing homogeneous product. Inverse demand function is P = 1500 -10Q and each firm has a marginal cost of $20 with fixed cost of zero.
A driver wishes to buy gasoline and have her car washed. She finds that the wash costs $3.00 when she buys 19 gallons at $1.00 each, but that if she buys 20 gallons, the car wash is free. Thus the marginal cost of the twentieth gallon of gas is:
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