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Assume that the Demand curve is given as Q=100-4P and the supply curve as P=10+4Q.
a. What would be the price and quantity with perfectly competitive markets?
b. What will happen to price and quantity if the government imposes a specific tax of $1 per unit on the producers?
What would be DWL? What would be tax incidence on producers and consumers?
In The General Theory of Employment, Interest, and Money, John Maynard Keynes wrote: If the Treasury were to fill old bottles with banknotes, bury them at suitable depths in disused coal mines which are then filled up to the surface with town rubbish..
Find the amount of consumer surplus(CS) for a linear demand P = 20 - 2x, when (i) P = 0 and (ii) P =10 What is the maximum and the minimum amount of CS a consumer can have for this demand and at what prices?
Which is the largest component of expenditure in a three sector model? Which component of aggregate expenditure is more volatile? Explain why?
A man is planning to retire in 20 years. He can deposit money for his retirement at 6% compounded monthly. It is estimated that the future general inflation rate will be 4% compounded annually. What deposit must be made each month until the man retir..
Suppose a computer manufacturer is currently producing a total of 1 million computers in two states, Iowa and South Dakota. The firm is currently employing 50,000 production workers, with 20,000 working in South Dakota and 30,000 working in Iowa.
Which communist theorist is most closely identified with the communist party as a revolutionary force?
Mar ´ia lives in the beautiful country of Inflationlandia. She earns 30 million pesos a month. She only consumes hamburgers and buns. The price of a dozen hamburgers is 2 million pesos and the price of a dozen buns is 1 million pesos. Graph her budge..
A U.S government bond matures in 10 years. It's quoted price is now 96.4, which means the buyer will pay $96.40 per $100 of the bond's face value. The bond pays 5% interest on its face value each year. If $10,000 (the face value) worth of these bonds..
If an employee is transporting company materials and gets into a car accident, should the company be held responsible and liable for any damages? Would your stance differ depending on if the employee were on or off the clock?
The great English economist Alfred Marshall (1842-1924) invented many of the tools of modern economics, but he was most concerned with the application of these tools to the problems of society. Explain how the cool head might provide the essential po..
State whether the following describes marginal cost, average total cost, average variable cost, or average fixed cost. (Note: some statements may describe more than one cost curve.)
ellen and may can produce two goods in a day breakfast bars and frog food pellets. in a single day may can make 10
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