Q: 12. suppose that the 2-year interest rates in the US(foreign) and KRW (domestic) are 1.5% and 3%,…
A: Interest rate parity is a situation or condition that states that the returns one generates from…
Q: In the United States, nominal interest rates tend to move economy is experiencing, nominal interest…
A: Nominal interest rate refers to the rate of interest before considering the inflation into account,…
Q: 3. P 5000 is put into an empty savings account with a nominal interest rate of 5%. No other…
A: Because compound interest accrues and is added to the accrued interest from prior periods, borrowers…
Q: How is MC calculated? 300 for the first MC is incorrect.
A: Marginal cost is the cost of producing an additional unit of output. We have the formula of MC :-…
Q: Assume that the market supply curve for potatoes is Qs1 = 12 + 0.5P, and that there are two…
A: In any region or state the equilibrium is said to occur when demand is equal to its supply. Storage…
Q: Suppose the information in the table is for a simple economy that produces and consumes only four…
A: Nominal GDP is the value of goods and services produced within the boundaries of the nation. The…
Q: Directions: Plot the following hypothetical market demand and supply schedules for commodity X in a…
A: Equilibrium quantity is when there is no lack or surplus of a product in the market. Supply and…
Q: In the long-run, all inputs are a. fixed. b. more expensive. c. less expensive. O d. variable.
A: Long run is the time period where the firm has enough time to change their any inputs. In long run…
Q: How is the LRAC derived? Selected answer will be automatically saved. For keyboard navigation, press…
A: Average cost is the cost of producing goods per unit. Average cost is calculated by dividing the…
Q: Suppose that a firm produces 450,000 units a year and sells them all for $20 each. The explicit…
A: Economic Profit = Total Revenue - Explicit cost - Implicit cost Total Revenue = Price * Quantity
Q: A young engineer is considering establishing his own small company. An investment of P400,000 will…
A: A rate of return refers to the net gain or the loss of an investment over a certain time period…
Q: What is the basic principle of the Cupe Strike Current Event as shown in the table?
A: The phrase "economic principle" refers to a wide variety of economic theories and principles that…
Q: In the late 1990s, car leasing was very popular in the United States. A customer would lease a car…
A: Adverse Selection: Adverse selection implies a factor of the imperfect market that is happened one…
Q: 13. Identify which way the labor supply curve would shift under the following scenarios. A country…
A: As the labor supply curve shows the positive relationship between the wage rate and the supply of…
Q: Consider a pure exchange economy with two goods, r and y, and two consumers, 1 and 2. The consumers'…
A: For pareto efficient allocation Marginal Rate of Substitution of consumer 1(MRS1)=Marginal Rate of…
Q: Match the term with the Definition Problem: Unemployment Indicator: Unemployment Rate Problem:…
A: “Since you have asked multiple question, we will solve the first question for you. If youwant any…
Q: Explain three implications of increasing inflation.
A: Inflation is known as an increase in prices across the board for goods and services. Because…
Q: Explain the following: Neutral fiscal policy, Built in Stabilizer
A: Fiscal neutrality states that fiscal policies by government such as taxing, expenditure, or…
Q: Suppose the nominal interest rate on car loans is 11% per year, and both actual and expected…
A: An increase in the nominal price of products and services in the economy for a given period is…
Q: Consider Snackistan, a hypothetical country that produces only burgers. In 2016, a burger is priced…
A: Money neutrality says that change in money supply has no effect on real variable. Only nominal…
Q: Part 1: Spatial Equilibrium The demand in market 1 is D₁ = 24 - P₁ The supply in market 1 is S₁ = -2…
A: In microeconomics, the concept of economic equilibrium is applied to the context of prices. It is…
Q: Two bidders compete in a sealed-bid auction for a single indivisible object. For each bidder i, the…
A: In the sealed-bid auction, when bidders place their bids without being aware of the other…
Q: Demand function of a competitive industry is : Px = 104 - Q where Q is total production of that…
A: Given Demand function: P=104-Q ....(1) Production function: q=L1/4K3/4 .... (2)…
Q: Consider the interval of random numbers presented below. The following random numbers have been…
A: Given:- Random numbers i.e 99,98,26,32,49,52,33,02,09,17 Arrival time=10 hours To calculate:-…
Q: A triple A battery manufacturer determines that at a price of K50 50 units of the triple A batteries…
A: Given information For triple-A battery When P=50--- Q=50 When P=60----Q=40 Fixed cost=300 Variable…
Q: The transmission mechanism of monetary policy is how central banks attempt to control the price…
A: Monetary policy is the policy instrument of central bank under which it aims to control the money…
Q: Refer to the Article Summary. Implementing a negative interest rate policy, as is discussed in the…
A: When the fed wants to regulate the economic conditions or improve the economic situation of the…
Q: A company is considering pursuing a project with an initial cost of $200,000 annual operating and…
A: To determine conventional payback period divide the initial cash outlay of a project with the amount…
Q: How will each of the following scenarios impact the market for money The central bank conducts an…
A: Money supply shows the quantity of money supplied at each interest rate in the economy.…
Q: profit (b) Since the feins earn Zero there will be no new entries and the feins would also leave…
A: An industry is formed by a group of firms producing unique products. The profit level from the…
Q: Q2. Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has a…
A: Given that, Truck Driven = 105,00kms Operating Cost = 11.4 Cents The truck is driven by only…
Q: Describe the characteristics of an oligopolistic market and explain whether it is socially efficient…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If you…
Q: Consider the hypothetical economy depicted on the graph. Initially, the economy operates below…
A: demand-pull inflation alludes to inflation in the economy brought by consumer demand wherein total…
Q: We can combine the models we have seen so far to explain both real GDP and the price level in the…
A: Optimal level of employment for any input is achieved at the point where the value of marginal…
Q: mr.rahim is planning to pursue MBA studies.initial inquiry shows that he will have to pay RM 25,000…
A: Profits are treated and calculated differently by economists and accounts. While calculating the…
Q: Why Universal Basic Income is better than Employee of last resort?
A: A proposed government guarantee of a monthly payment to every citizen is known as universal basic…
Q: In the closed economy IS-LM model, how would the responsiveness of money demand to a change in…
A: IS-LM Model: The IS-LM model explains how the macroeconomy's interest rate and total output. It…
Q: Consider the following data for 2019 from an after tax cash flow analysis. What is the after tax…
A: The cash flow generated by an investment after any tax responsibilities have been settled is known…
Q: In 1970 a movie ticket cost US$2.00. Today, a movie tickets costs NZ$15.00 You also have the…
A: CPI (Consumer Price Index) determines the change in the prices of the products and services…
Q: According to the Economics Policy Institute (Mishel and Wolfe, 2019) CEO pay has grown 940% since…
A: According to Adam Smith, the invisible hand is needed for the market to work efficiently. The…
Q: what policy can the government can implement to combat financial Instability in a country?
A: The financial system is an integral part of an economy. It comprises banking and non-banking…
Q: Assume the following: • A firm is experiencing diseconomies of scale (decreasing returns to scale) •…
A: Economies of scale :- This is the situation when the increasing production leads to decrease in…
Q: to being unmatched. Preferences over matches are as follows: m₁ W₂ W3 W1 m₂ W₂ > W₁ > W3 m3 w1 W2 W3…
A: Stable matching exists when there is zero incentive for some m-w pair to defect jointly. Matching is…
Q: How to pay for Universal Basic Income/Basic Income Guarantee, through MMT approach?
A: A proposed government guarantee of a monthly payment to every citizen is known as universal basic…
Q: Consider a marriage market with three men and three women, all of whom prefer any match to being…
A: Given, A marriage market with three man and three women, All of whom prefer any match to being…
Q: Many police officer positions require the applicant to have a college degree, even though the tasks…
A: Discounting is the process of computing the present worth of a payment or a stream of payments that…
Q: The demand in market 1 is D₁ = 24 - P₁ The supply in market 1 is S₁ = -2 + P₁ The demand in market 2…
A: Given function D1=24-P1 S1=-2+P1 D2=16-P2 S2=2+P2 Cost of transportation Pt=2
Q: 9. Suppose Warner Music and Universal Music are in a duopoly and currently limit themselves to 10…
A: The study of strategic interactions and mathematical models is done in game theory. A dominant…
Q: Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in…
A: Total cost is the total amount of expenditures a business incurs to produce a particular level of…
Q: In a closed economy, consumers spend $400 regardless of the level of income, and the marginal…
A: The GDP is the value of the goods and services produced within the boundaries of the nation. It…
Please answer thankyou!!!
Step by step
Solved in 2 steps with 1 images
- In a market where the supply curve is perfectly inelastic how does an excise tax affect the price paid by consumers and the quantity bought and sold?The following table is to be used for answering questions 9-12. Price per dozen Dozens of doughnuts Dozens of doughnuts demanded supplied $5.00 12,000 24,000 4.25 15,000 21,000 3.50 18,000 18,000 2.75 21,000 15,000 2.00 25,000 10,000 9. What is the equilibrium price? What is the equilibrium quantity? 10. Suppose that a tax of $1.50 per dozen is levied by the government on producers. What is the new equilibrium quantity? What is the new equilibrium price? 11. Suppose, instead, that a…1. The equilibrium price of juice was initially $1.80 per bottle, and the equilibrium quantity was 8,000 bottles per day. When the government imposed a tax of $0.50 per bottle, the price went up to $2.18 per bottle, and quantity fell by 12%. A) How much of the tax (in $/bottle) are the buyers paying? B) How much of the tax (in $/bottle) is shouldered by the sellers? C) After the tax is imposed, how many bottles will be consumed?
- Suppose a local government votes to impose an excise tax of $0.90 per bottle on the sales of bottled water. (Assume that all bottles are identical and residents cannot shop elsewhere.) Before the tax the equilibrium price and quantity are $1.20 and 2000 bottles per day. After the tax is imposed, market equilibrium adjusts to a price of $1.70 and quantity of 1300 bottles per day. a. Draw the supply and demand diagram before and after the excise tax is imposed. 1.) Using the line drawing tool, plot the original and new supply curves and label the lines properly. 2.) Using the point drawing tool, indicate the original and new equilibrium points and label these points properly. Carefully follow the instructions above, and only draw the required objects. Price ($ per bottle) 3.00 2.80- 2.60- 2.40- 2.20- 2.00- 1.80- 1.60- 1.40- 1.20- 1.00- 0.80- 0.60- 0.40- 0.20- 0.00+ 0 1000 2000 Quantity (bottles per day) 10 3000In the graph below, click on the line segment that denotes the size of a sales tax imposed on the coffee market. price, P 0 B A D S coffee, Q7 The equilibrium price of a good is $15. Suppose the government introduces a tax on this good. In this case, the price paid by consumers is 1.4 times more than the equilibrium price, and the price received by producers is 1.2 times less than the equilibrium price. Calculate the amount of tax per good. Enter your answer in the box below and round to two decimal places if necessary.
- Price $3.50 3 2.50 Supply Demand Demand + $1 tax 1,200 1,500 Quantity The graph above illustrates a market for gasoline with a $1 tax imposed on the buyers. What is the buyer's tax incidence?Price per dozen Dozens of doughnuts Dozens of doughnuts demanded supplied $5.00 12,000 24,000 4.25 15,000 21,000 3.50 18,000 18,000 2.75 21,000 15,000 2.00 25,000 10,000 10. Suppose that a tax of $1.50 per dozen is levied by the government on producers. What is the new equilibrium quantity? What is the new equilibrium price?Suppose a local government votes to impose an excise tax of $1.00 per bottle on the sales of bottled water. (Assume that all bottles are identical and residents cannot shop elsewhere.) Before the tax the equilibrium price and quantity are $1.20 and 1900 bottles per day. After the tax is imposed, market equilibrium adjusts to a price of $1.80 and quantity of 1400 bottles per day. a. Draw the supply and demand diagram before and after the excise tax is imposed. 1.) Using the line drawing tool, plot the original and new supply curves and label the lines properly. 2.) Using the point drawing tool, indicate the original and new equilibrium points and label these points properly. Carefully follow the instructions above, and only draw the required objects. CH Price ($ per bottle) 3.00- 2.80- 2.60- 2.40- 2.20- 2.00- 1.80- 1.60- 1.40- 1.20- 1.00- 0.80- 0.60- 0.40- 0.20- 0.00 0 1000 2000 Quantity (bottles per day)
- Question 7 Read the following scenario and answer the questions that follow. Scenario 4 In the market for cigarettes the impact of a specific excise tax of R10,00 is depicted in the diagram below. D ST Тах E 55,40 50,00 45,40 E2 21,00 ST S 11,00 Q 50 120 150 200 Packets per week (thousands) In the absence of any excise tax, a packet of cigarettes cost R50,00 and the equilibrium quantity is 150 000 packets per week. For scenario 4, discuss the impact of a specific excise tax of R10,00 in the market for cigarettes with reference to the provided diagram. Your discussion should incorporate the change in price received by suppliers and paid by consumers owing to the imposition of the specific excise tax. 7.1. Price per packet (R)1. What is the equilibrium price and quantity? 2. Suppose the government imposes a tax of $1.00 on each water bottle. Complete the column showing quantity supplied after the tax. (Hint: at a price of $8.00 the quantity supplied was 36000. With the tax, this quantity supplied will be supplied only at a price of $9.00, so the Quantity supplied with a tax at 9.00 is 36000) You continue, so at $8.50, the producer only gets 7.50. so is only willing to offer 32000 units. Qd Price 000s) $9.00 20 8.50 8.00 7.50 7.00 6.50 6.00 24 28 32 36 40 44 Qs (000s) 44 40 38 32 28 24 20 Quantity supplied after tax Qs(t) (000s) 36 32 Price 28 24 3. On your graph, plot the new supply curve after the imposition of the tax (in a different colour, to differentiate the supply curve). 4. What will be the new equilibrium price and quantity? 5. How much of the tax is passed onto the consumers in the form of price increase, and how much is paid by the producers? Indicate the producer and consumer burden on your…Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the questions. D is the demand curve before tax, S is the supply curve before tax and S, is the supply curve after the tax. Price 18 12 10 10 12 Qua (a) For the market for cigarettes without the tax. Indicate: (1) Price paid by consumers (i) Price paid by producers (ii) Quantity of cigarettes sold (iv) Buyer's reservation price (v) Seller's reservation price
