Q: David consumes two things: gasoline (q₁) and bread (92). David's utility function is U(91, 92)=3091₁…
A: A consumer will maximise the utility at a point where marginal rate of substitution is equal to the…
Q: The demand function for football tickets for a typical game at a large midwestern university is D(p)…
A: The curve that depicts various quantities of goods and services are being demanded by individuals at…
Q: The economy is in a recession. The Fed could take direct action to stimulate economic activity by O…
A: Recession refers to fall in the aggregate demand. Fall in demand causes rise in unemployment rate.
Q: Why has the government chosen to provide moneary incentives to bring about the move to health…
A: HEALTH INFORMATION EXCHANGES They were putting a patient's medical records or data on the internet…
Q: In Costa Rica, which has 1,000 residents, 400 people do not currently work. Of these 400 persons,…
A: Answer; Total Population = 1000 No Of Unemployec = 400 No Of Employed = 600 150…
Q: What determines by how much the price goes up when the government implements a price floor?…
A: Price control is a form of government control over the free market to increase welfare. Price floor…
Q: Creativ-Design, Inc. has 68% of the market share in a particular geographic region for one of its…
A: MONOPOLY A monopoly is a form of market where there is a single seller and a large number of buyers.…
Q: Based on the IRS table, Jake calculates that his marginal tax rate is _ when his annual taxable…
A: Answer; The marginal tax rate is the tax rate corresponding to the tax bracket in which the income…
Q: Which statement about the total surplus is correct? Question 10 options: it is equal to value…
A: Total surplus is the measure of the total well-being of the participants (consumers as well as…
Q: Explain what tendency does consumption smoothing refer to and why is it assumed in an intertemporal…
A: Consumption smoothing is the process of maximizing our level of living by maintaining a healthy…
Q: A manufacturer has $600 to spend on the production of a certain product and knows that if "x" units…
A: We have to maximize the output given the cost constraint. Output function = 120x4/5y1/5 Cost…
Q: Consider a two-player, sequential-move game where each player can choose to play right or left.…
A: Nash Equilibrium:- The Nash equilibrium can be explained as a game theory decision-making hypothesis…
Q: The government decides to place a £25 per unit-subsidy on the sales of books. The initial demand and…
A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…
Q: Figue AAA Q' Qt Q" Q Question 45 Consider Figure AAA, which is a diagram we built to study the…
A: A) in perfect competitive market:- 1) in perfect competitive market, there are many number of…
Q: EUROPEAN ECONOMIC DEVELOPMENT - Which are the three features of the “Impossibility Trinity…
A: The policy trilemma, sometimes known as the "impossible trinity," is a set of trade-offs that a…
Q: If nominal GDP is $1,000 and the money supply is $250 then money velocity is
A: Given money supply = 250 $ Nominal GDP = 1000 $ Velocity of money = Nominal GDp / Money supply =…
Q: A country whose National Saving is greater than its Investment will experience a ) Trade deficit (IM…
A: Trade surplus occurs when exports (X) exceed the imports (IM). Trade deficit occurs when imports…
Q: 1. George maximizes expected utility and he has a von-Neumann-Morgenstern utility function u (c) =…
A: Utility = c1/2 Initial Wealth = $1000 success rate = 9% If successful then payoff = $100,000 Payoff…
Q: A monopolist faces two separate markets and can price discriminate accordingly. The demand in the…
A:
Q: Which statement below is incorrect in regards to bull and bear markets? Multiple Choice O Bull…
A: A bull market is that market situation in which the securities are on the rise. It means the price…
Q: All of the following are risks of pricing too high, except O Low, unsatisfactory demand O Customer…
A: In the market, firms use different pricing strategies based on their specific market and…
Q: Data measuring the economic growth rate, as measured the year after a major natural disaster, for…
A: Economic growth: - economic growth is the increase in the quantity of goods and services in an…
Q: PPP fails in reality for all the following reasons except what? O Monopolistic or oligopolistic…
A: Answer is given below
Q: If a country's economic data shows private savings of $400 million, government spending of $250…
A: Ans. The trade surplus is the value of the difference between exports and imports of a country.…
Q: If investors believe a country's currency is fixed at a fundamentally overvalued level, the central…
A: Foreign exchange rate The foreign exchange rate is the rate at which two currencies of different…
Q: The following diagram presents a circular-flow model of a simple economy. The outer set of arrows…
A: Circular flow of income shows flow of goods and services and products between households and firms.
Q: Soft selling occurs when a buyer is skeptical of the usefulness of a product and the seller offers…
A: A sales representative is trying to sell a company a new accounting system that will reduce the…
Q: China's economic growth in 2015 is slowest in 25 Years China's growth rate slowed to an annual rate…
A: Answer; Here we will use Rule 70 : Number of years to double = 70/Annual growth rate%…
Q: P2 P1 PO D (MPB) Q1 Consider the diagram above. What should be the size of the subsidy to reach the…
A: Positive externalities are subsidized by the government to increase level of output.
Q: Suppose that an individual's demand curve for doc- tor visits per year is given by the equation P =…
A: In economics, a demand curve is a graphic representation of the relationship between product price…
Q: Consider a hypothetical market for milk. The market is perfectly competitive. A equal, what happens…
A: Demand curve shows a negative relationship between price and quantity demanded. Supply curve shows a…
Q: (2,1) (7,7) (1,2 Jarantee for each row and each column. Find the prudent strategies for cate any…
A: *Answer: Prudent Strategies are those for which worst possible outcome is the best among all .…
Q: The residential division of Prism's high-speed Internet service uses one advertising agency, while…
A: Click-Through Rate Click-Through rate measures the ratio between the number of clicks on an…
Q: Petrol Corp. owns several drilling operations in the Gulf of Mexico, refineries, service stations,…
A: Because refineries and tanker trucks are controlled by the Clean Air Act, the environmental manager…
Q: Assume the government makes no fiscal policy changes when the economy experiences a downturn. Which…
A: In the mentioned question we have been asked what would be expected when the economy is turndown.
Q: A negative externality results if __________________. A. consuming a good B. consuming a…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: A used car dealership rents 210 cars for $9 a day. They want to increase the price to maximize their…
A: Profit maximizing refers to a scenario at which a firm is getting maximum profit at producing at a…
Q: If a country were to increase its saving rate, then in the long run it would also increase its…
A: The answer is - Growth rate of productivity
Q: Which of these variables are not considered a function of state occupational regulation? A.…
A: A type of state government regulation that limits the title and practice of a profession to those…
Q: Assume you will be paid $100 next year and every year after, and the interest rate is 2%. Calculate…
A: Every year end payment A= $100 i =2% n= infinity We have to fund present value of this infinite…
Q: 17. Which of the following mechaniams impede capital mobility? A country's trade balance The…
A: The capacity to shift capital from one nation to another is referred to as capital mobility. The…
Q: When the government borrows funds in financial markets to pay for budget deficits and interest rates…
A: Fiscal policy is use of government revenue and spending to influence the economic activity. The…
Q: Analyze the relationship between negative externalities and inefficient overproduction
A: A benefit or expense that occurs as a result of the producer's activity but is not borne by the…
Q: total amount of consumer surplus lost due to the tax 1. A+B+F amount of consumer surplus lost due to…
A:
Q: supply New supply Demand Quantity Old New supply supply aph C New Old supply Demand Quantity aph A…
A: In economic matters, it is broadly acknowledged that innovation is the vital driver of economic…
Q: 2. A water resources project has benefits that equal $40,000 at the end of the first year and…
A: Given Benefit at the end of the first year A1 = 40,000 and benefit increases on a uniform gradient…
Q: to people who make over $50,000 and are permanent. Will you work more or less when marginal tax…
A:
Q: Suppose that an increase in the price of good A results in a decrease in demand for good B. This…
A: Since you have posted multiple questions, we will solve first question for you. In case you want…
Q: Unemployment and the Labor Market-Work It Out: Question 2 Consider an economy with the Cobb-Douglas…
A: Since you haven't mention anything, I'm assuming you need the answer for 3rd part only.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Suppose that the demand curve for wheat is Q500 - 10p and that the supply auve is O 10p What are the efects of a subnidy (negative tax) ofs4 per unit paid to produoers on the equlibrium, govemment. subsidy cost, consumer surplus (CS), producer surplus (PS), weifare (W, and deadweight loss (DWL)? Wih the subsidy, the equibrium price is Sand the equilibrium quantity isunits. (Enter your responses as whole numbers) The cost of the subsidy to the govermment is S (Enter your response as a whole number) The change in consumer surplus (ACS) is S (Enter your response as a whole number.) The change in producer surplus (APS) is S Enter your response as a whole number) The change in welttare (AW) is S (Enter your reaponse as a whole number and include a minus sign i necessary Deadweight loss is S (Ender your response as a whole number)The graph represents the market for sweatshirts. After a $20 subsidy is given to consumers, which of the following statements is true? Tprice 50 45 40+ 35 30 25- 20- 15- 10- 5- +++ 100 200 300 400 500 600 700 800 quantity O A. Suppliers will receive $35 per sweatshirt and there will be a deadweight loss of $2000. B. The value of producer surplus is $1000 after the imposition of the subsidy. O C. The subsidy will cost the government less than $10,000.S- MSC. D- MSB 100 200 300 400 500 600 700 800 Quantity (gallons per day) The figure shows the competitive market for milk. In the figure above, when the quantity of milk produced is 600 gallons per day, what is the deadweight loss? Select one: O a. $50 O b. $500 O C. $250 O d. $125 Price (dollars per gallon)
- Considermarketforagoodcharacterizedbythefollowinginverse demand and supply functions: PX = 10 − 2QX and PX = 2 + 2QX.a. Compute the surplus received by consumers and producers.b. Now suppose all manufacturers of this good are to pay a lump tax of $0.10that will be used by the government regulators to defray some of the environmental cost imposed by this good’s production. What will be the new surplus received by consumers and producers?c. Based on your results in part ‘b’ above, how will you evaluate the impact of this tax policy on the society? Explain55.00 50.00 45.00 40.00- 35.00 30.00 25.00 20.00 15.00 10.00 5.00 5000 O b. $75,000 c. $200,000 O d. $150,000 Demand 10000 15000 20000 25000 30000 35000 40000 Suppose that a price ceiling of $20 is imposed, what will be the deadweight loss? a. $125,000 Suppnt ard es ar 14 O 10 5 price 25 50 D Suppose a tax of $9 per unit is imposed on this market. How much will buyers pay per unit after the tax is imposed? $5 Between $5 and $10 Between $10 and $14 $14 quantity
- 2. The demand and supply functions of a gcod are given by P = -Qd + 125, 2P = 3Qs + 30. Determine the equilibrium price and quantity. Determine ako the effect on the market equilibrium if the govemment decides to impose a fixed tax of GHC5 on each good Who pays the tax? (p = 81, q = 44, then p = 83, q = 42) 3. If fixed costs are 18, variable costs per unit are 4, and the demand function is P = 24 - 2Q. Obtain an expression for n in terms of Q and hence sketch a graph of n against Q. a) For what values of Q does the firm break even? (q = 1 or 9) b) What is the maximum profi? (n = 32 at q = 5) 4. Given the supply and demand functions P = Q? + 12Q, + 32, P = -Qå - 4Qa + 200, Calculate the equilibrium price and quantiy. (p = 140, q = 6)11.00 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 300 600 900 O c. $2,500 O d. $1,200 Domand Supply 1200 1500 1800 2100 2400 27 Suppose that a $4 subsidy is given to consumers in this market, what is deadweight loss? O a. $1,800 O b. $2,000Price per mile B C D---- E F H a Supply Demand Miles of taxi service per day Figure 6.6 Refer to Figure 6.6, which shows a market for taxi medallions. If the number of taxi licenses is reduced from Q₂ to Q₁ OA. the gain in consumer surplus equals the loss in producer surplus. B. the gain in producer surplus equals the loss in consumer surplus. OC. the gain in consumer surplus is greater than the loss in producer surplus. OD. the gain in producer surplus is smaller than the loss in consumer surplus.
- Consider a market in which the demand curve is given by P = 9 -0.1Qd, and the supply curve is given by P = 0.2Qs. Suppose the government imposes a price floor of 7 dollars. How much is producer surplus? 100 ○ 40 90 070 Crider a market in which he and by 1-41 Selected Answer88 Awers 0100 70 pics of how much is80 50 A E L Sty MN 500 C T M D P 1000 Dus 700 Note: A, B, ,P represent each area section. In the Insulin market, the government decides to regulate a price with the ceiling prince $50.00. With this regulation, where are the area of producer surplus? OL O A+B O E+F+L OB+FA company is considering building a bridge across ariver. The bridge would cost $2 million to build andnothing to maintain. The following table shows thecompany’s anticipated demand over the lifetime ofthe bridge:Price per CrossingNumber of Crossings,in Thousands$8 07 1006 2005 3004 4003 5002 6001 7000 800a. If the company were to build the bridge, whatwould be its profit-maximizing price? Would thatlevel of output be efficient? Why or why not?b. If the company is interested in maximizing profit,should it build the bridge? What would be itsprofit or loss?c. If the government were to build the bridge, whatprice should it charge?d. Should the government build the bridge?Explain.