The Federal Government has, after consultation and research by health Canada, decided to promote the positive health effects of Canadian maple syrup. The plan includes step one, a nationwide advertising campaign promoting maple syrup as a healthy alternative to refined sugar. Step two is a decision to subsidize the production of syrup at a rate of $.50 per liter. The market price for syrup is $7.00. Assuming that the advertising campaign is memorable, what should happen to the demand for maple syrup and why? What should happen to the supply curve for maple syrup once the subsidy is in effect? What will happen to the equilibrium price. Draw a graph which shows the outcomes of these two steps.

If you had been hired to advise your local public transit authority on how they could raise transitrevenues and you knew the elasticity of demand for transit rides, you would be able to give a goodanswer.Explain why above statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate.

Suppose the inverse demand curve for drugs is p(q) = 200 - 4q and the inverse supply curve is p(q) = q. Draw the supply and demand curves on the graph below. Label the current price and quantity, label and calculate the current producer and consumer surplus, and calculate and label the total revenue accumulating to suppliers in this market.

Question 12 In order to bring to South Korea a Therapy-based mental health app, you first need to roughly estimate your market demand. Your market research (country report) yields the following statistics: -Therapy mental health app users in China: 30M -Total adult population in China: 1.2B -Total adult population in Korea: 40M -Smartphone ownership in Korea: 94% -At least "somewhat interested" in mental health products in Korea: 30% -Currently using similar apps (mediation or mindfulness) in Korea: 4M According to the Analogy method, market demand estimate could be: 4M 30M/3 = 10M (because Korean population is one third of the Chinese population) 30M Both options 1) and 2)

Identify the initial equilibrium price and quantity of the drug per day. Suppose the government imposes a price control at $1.50 a dose. How many doses are purchased after the price control is imposed?

In 2014, the Spanish government passed a law to change a regulation, known as the "Beckham law", on foreign athletes. This new law will require foreign professional athletes to pay the standard Spanish tax rate of 52 percent on earnings of more than 300,000 euros, up from the 24 percent rate they had been paying since 2005. For top-quality players, the elasticity of migration under the Beckham law was estimated to be 1.80 based on the average annual tax rate. Using this estimate of elasticity, the migration of top quality players to Spain should decrease by%. Round your response to the nearest two decimal places.

Theory and Evidence. Childcare is a sector that is heavily regulated because of the importance of ensuring child safety. The current price of childcare is $1200 a month. The government is concerned with this market: Evidence shows that young parents are not returning to work because they cannot afford childcare. The government conducts a randomized control trial of a new policy. In some randomly selected cities, the government mandates that childcare providers cannot charge more than $800 per month. Other randomly selected cities are left unaffected to serve as a control. In six months, the outcomes show that the number of children getting childcare has not changed, but that waiting lists for childcare have increased dramatically. (a) Can this outcome be reconciled with the theory of supply and demand? (b) Do you expect that outcomes will improve in the long run?

Using your knowledge of demand and supply shifts and elasticity, what are the possible impacts of the Covid-19 pandemic on Canadian food prices?

Suppose a movie theater determines that the elasticity of demand for movie tickets is -2.0 for senior citizens and –1.5 for adults under age 65, and the marginal cost is $2 per consumer.  Use the Lerner index to determine how much senior citizens should be charged and how much adults under age 65 should be charged. A different movie theater, which faces the same marginal costs, charges consumers $6 for matinee movies and $10 for evening movies.  Use the Lerner Index to calculate the price elasticity of demand for matinee consumers and evening consumers.