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1. In which case would the shortage resulting from a price ceiling be greater: when supply is inelastic or elastic? Explain your answer.
2. Demonstrate how a price floor is like a tax on consumers and a subsidy to suppliers. Label the following: tax on consumers, transfer of surplus to suppliers, and welfare loss.
a. Who gets the revenue in the case of a tax?
b. Who gets the revenue in the case of a price floor?
Which country has the comparative advantage in computer production?
After keeping the truck for four years, he is hoping to get $10,000. He estimates that the insurance, property tax, and maintenance costs will be $2,000 in year 1 and gradually increase every year by $1,000. The equivalent uniform annual cost of th..
the supply curve for product x is given by qxs -520 20px .a. find the inverse supply curve.p qb. how much surplus
Each month, an airline sells 1,500 business-class tickets from London to Paris at $200 a ticket, and 6,000 economy-class tickets at $80 a ticket. Use this information to estimate the price elasticities of demand of business travelers and tourists ..
Using (c), locate the coordinates of the turning point of the function.
Suppose the government imposes the following kind of sales tax: there is no tax for selling the first 35 units, but for selling every uinit beyond the thirty-fifth unit, the seller has to pay the government an additional $12. What is the new optim..
Determine the Stackelberg equilibrium with one leader firm and two follower firms if the market demand curve is linear and each firm faces a constant marginal cost, m, and no fixed cost. (Hint: See Appendix 13B for the Stackelberg model with one f..
Identify a few dimensions of diversity that you feel make up your identity. Keeping these dimensions in mind, what do you bring to the diversity of our UT community? Provide examples of experiences to illustrate your answer.
How many CDs and how many DVDs should Sarah purchase if she has a fixed budget of $150 to spend on these two items? Suppose her budget for these two goods is only $80. How many CDs and how many DVDs should she purchase?
An $8,000 car loan is paid off with $250 monthly payments over three years, what monthly interest rate r is the bank charging? It can be shown that this problem translates into the equation
What is the effect on output? What government policy response would you recommend?
Find the cost of equity financing for common stock for the following information Dividend in year 1 = $8, growth = 6%, floatation costs percentage of stock price = 11.4%, and the current stock price = $58.
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