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Assume that the government places a 50 percent tax on widgets. Neither the demand for widgets or supply of widgets is perfectly elastic or inelastic
a. Draw a graph showing how the tax will affect the market.
b. Where does the incidence of the tax lie? Explain.
A realtor wants to estimate the effect of house size on house value. they collect data on house size and house value and run a regression of house value(in $)House Value, on house size(in square feet),House Size. The regression yields a positive esti..
It would not cost a firm to product anything in the short run if price were:
A firm has enough retained earnings to finance an investment project. For this firm, the market interest rate:
Suppose that country A pegs its currency to the currency of country B. Which of the following will NOT be a benefit of this arrangement to country A?
On the accompanying graph, illustrate (A) nominal per capita GDP and (B) real per capita GDP for each year. (The necessary data appear on the endpapers of this book.) By what percentage did nominal per capita GDP increase in the 1990s? By what percen..
Elucidate which firm's product provides the greatest value-created.
The owner of a baseball team and local stadium has commissioned a study that showed the demand by fans for stadium seats (per playing date) to be P = 22 - 0.2Q, where P is the average price of a ticket and Q represents the number of seats (expressed ..
Suppose that Third National Bank has reserves of $20,000 and checkable deposits of $200,000. The reserve ratio is 10 percent. The bank sells $15,000 in securities to the Federal Reserve Bank in its district, receiving a $15,000 increase in reserves i..
Construct a demand curve from individuals who value a Chipotle burrito with values {$12, 10, 9, 8, 8, 8, 7, 7, 6, 6, 5, 4, 3, 3, 3, 2, 2, 1}. Identify the optimal single price, and the associated quantity and profit if the marginal cost of production..
q. 1. when discussing the maximization of utility regardless of whether you chose to work more hours or fewer when
submit data findings that include economic factors within that area that may influence your decision, or factors that have prohibited an area to be chosen.
Suppose demand conditions in industries X and Y are identical but that productivity increases by 5% in industry X and 2% in industry Y. If economy-wide productivity and the average wage each rise by 3%, we should expect that:
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