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- A 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.In macroeconomic analysis, a transfer payment is considered a a. fixed tax. O b. negative tax. O c. positive tax. O d. variable tax. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.Question 2Consider the case of Jonathan, who is a singlefather with one child. He can work as a serverfor $6 per hour up to 1,500 hours per year. Heis eligible for welfare and can receivegovernment support of $10,000 for notworking at all. If he works 1,500 hours, hisearnings would be______ and governmentsupport would be______.O a) 2.000; 8,000O b) 3,000; 7,000O c) 9,000; 1,000O d) 10,000; 0
- use diagramsa. What is the effect on the equilibrium price and quantity traded in market of theintroduction of a new technology that reduces costs of production for all firms?b. What is the effect on the equilibrium price and quantity traded in a market of a changein tastes that reduces the demand for the product?c. What is the effect on the equilibrium price and quantity traded in a market of theimposition of a tax per unit sold on suppliers?d. What is the effect on the equilibrium price and quantity traded in a market of thepayment of a subsidy per unit sold paid to suppliers?Q1) A: Find the expected demand for (2020) by using SMA and WMA. Years Demand Probability 2016 8 0.11 2017 11 0.09 2018 13 0.20 2019 15 ? 2020 ?Suppose the current exchange rate is 115 yen perdollar. We currently have a demand for 50 units of ourproduct when the unit price is 800 yen. The cost ofproducing and shipping the product to Japan is $6, and the current elasticity of demand is 22.5. Find the opti-mal price to charge for the product (in yen) for each of the following exchange rates: 60 yen/$, 80 yen/$, 100yen/$, 120 yen/$, 140 yen/$, and 160 yen/$. Assumethe demand function is linear.
- Imagine a scenic canyon, visited by many local people as well as tourists from beyondthe local area. Consider a scenario in which a mining company has proposed to the localauthority that it be closed to the public and put into the production of coal. Thinking interms of economics as a way of adjudicating the relative value of one use of the canyon overthe other, what would you need to know in order to make a comparison or assessment?What kinds of quantitative data would inform your decision, and where might they comefrom? What kinds of things might you need to know that are hard to measure? Once youhave listed the kinds of information and data that might be available to inform this decision, do you think it would be sufficient to making this decision, why or why not?Some finance experts advise consumers not to worry aboutrising gasoline prices, the cost of which can easily be coveredby forgoing one takeout meal a month, but to worry abouthow high energy prices will affect the rest of the economy. Forexample, each dollar-a-barrel price increase is equivalent toa $20 million-a-day “tax” on the economy. Explain what thismeans.4. Capital MThe equation of demand is Q=10000-5p, supply is Q=-2000+10p Q represents the quantity of houses on the market and P the rental price. The equilibriumrental price equals 800 euros per month. if the government imposing a maximum price of 500 euro per month,What are the effects of each measure for both house owners and people renting ahouse? And what are the consequences for the government? Analyse the measuresgraphically and mathematically.