QUESTION 13 Assume a conpany is importg music boxes classifed as 9208.10.0000. Aso assue the musc boxes inside aspecally designed pleste case uable lo store the music box. Aso asume there saclassiicaon for plestic cases of 3919.20.2000 When importing these music boxe with the plastic cases, whikh hamonied oode) would yoe e for the producte? 9208 10 0000 9208 10 0000& 3019.20.2000 3919.20 2000 Nether you smply st mliple harmonized codes enclosed

Consider the following set of diffusion curves. Assume that every unit of wind power represents an additional adopter of the innovation. 174 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 PATRICK SÖDERHOLM AND GER KLAASSEN 1986 1988 1990 1992 1994 1996 1998 2000 Denmark Germany UK: Spain Figure 2. Installed wind power capacity (MW). Which curve appears to have the slowest overall diffusion rate? O a.Denmark O b. Germany OCUK O d. Spain

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Your state legislature is considering increasing the sales tax on two different commodities: prescription drugs and restaurant meals. You estimate owm-price elasticity of demand for prescription drugs Lo be -0.08 and uwn-price elasticity of dermard for reslaurant meals lo be -0.95. If the legislaturc's primary gnal in incrcasing taxcs is to raiscmoncy most efficiontly (i.c., minimizing the resulting deadweight loss), it should tax bullıdrugs and restaurant meals equally. drugs bccausc domand is morc pricc inclastic. reslaurant meals Lecause lhey are nol a rnecessily. only thosc prescription drugs that arc not lifc saving. restaurant meals because demand is more price elastic.

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2. How could the principle of environmental resources such as the atmosphere and of conchisions about optimal depletion apply or not? resources? Kine Exercises 5b intergenerational allocation of resources. Suppose a generation is thirty-five vee of we are concerned with only two generations. Demand and supply functions for oil in the present generation are given by: Demand: Qd = 200– 5P or P = 40– 0.2Qd %3D Supply: Qs = 5P or P = 0.20s %3D (a) Draw a demand and supply graph showing the equilibrium price and quantity consumed in this generation in the absence of any consideration of the future. Now draw a graph showing the marginal net benefits from consumption in this period at all levels of consumption up to the equilibrium level. Express the net benefit (benefit minus cost) algebraically. (b) Suppose that the net benefit function is expected to be the same for the next generation. But there is a discount rate (interest rate) of 4 percent per annum, which for thirty-five years works…

Write down a model of positive production externality with two firms, in which theproduction activities of one firm directly affects the production/cost of the other firm.State and explain the key assumptions of the model. Using the model, answer thefollowing questions:(a) Explain why the presence of a positive production externality could prevent therealisation of an efficient outcome.(b) Name a possible cure for the positive production externality and explain how itcould solve the inefficiency problem.

3.

Say in a market we haveDemand is P = 5 – 0.005QSupply is P = 0.00125Qa-you will have a graph with price on the vertical axis and quantity on the horizontal axis formost parts of this problem. You will want to show intercept values and equilibrium values withthe specific values from the problem (when you graph the supply show it go out at least to thesame level of Q as the Q intercept for the demand curve).b-what are the equilibrium price and quantity traded in the market?c-say the government levies an excise tax in the market of 50 cents that renders the supply tonow be P = .00125Q + 0.5 (essentially the supply curve shifts up by 50 cents at each quantity).What are the new equilibrium price and quantity traded in the market with this excise tax?d-did the market price increase by as much as the 50 cent tax? (compare the market priceincrease with the amount of the tax of 50 cents)e-what is then loss in consumer surplus from the tax? Do consumers like excise taxes?f-what is the elasticity…

By definition: a substitute is a good that: Select one: O a. has same likeness as another good O b. that is not used in place of another good O c. of lower quality than another good O d. of higher quality than another good