Pranav's household consumes 1,000 litres of gasoline per year. After $0.15 gasoline tax was introduced, each household received an annual tax rebate. Is Pranav's household better off or worse off with tax and rebate than without both if the annual tax rebate is: [select:is better off;is worse off;could be either better off or worse off] a) $150? Pranav's household [ Select ]with tax and rebate b) $200? Pranav's household [ Select ]with tax and rebate c) $100? Pranav's household [ Select ] with tax and rebate

Why is the supply curve with constant unitary elasticity a straight line?

Using two demand and supply diagrams, one for the low-wage labor market and one for the high-wage labor market, explain how information technology can increase income inequality if it is a complement to high-income workers like salespeople and managers, but a substitute for low-come workers like file clerks and telephone receptionists.

The avenge annual income rises from 25,000 to 33,000, and the quantity of bleed consumed in a year by the avenge person falls from 30 loaves to 22 loaves. What is the income elasticity of bread consumption? Is bread a normal or an inferior good?

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?

Why is the demand curve with constant unitary elasticity concave?

Would you expect supply to play a more significant role in determining the price of a basic necessity like food or a luxury like perfume? Explain. Hint: Think about how the price elasticity of demand will differ between necessities and luxuries.

Is pork-barrel spending always a bad thing? Can you think of some examples of pork-barrel projects, perhaps from your own district, that have had positive results?

The social security tax is 6.2 on employees income earned below 113,000. Is this tax progressive, regressive or proportional?

Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either call her on the land-line phone for five cents per minute or he can drive to see her, at a round—trip cost of 2 in gasoline money. He has a total of 10 per week to spend on staying in touch. To make his preferred choice, Jeremy uses a handy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values in Table 6.6, figure out the points 011 Jeremys consumption choice budget constraint (it may be helpful to do a sketch) and identify his utility-maximizing point.