Question 2 The demand for good X is given by Q Qx = = 50-2P, and the supply of good X is given by 20+ 4Px. The demand for good Y is given by Q = good Y is given by Q = = 65-Py and the supply of 5+2Py. Both goods are currently untaxed, but the government of Lesotho needs to raise revenue to finance tarred road from Masianokeng to Roma by taxing good X with tx and good Y with ty. a. Calculate the excess burden for each good as a result of tax imposition. [15]
Q: None
A: Approach to solving the question:1. Understand the concept of the money multiplier and its…
Q: A bank that has assets of $150 billion and a net worth of $30 billion must have Multiple Choice О…
A: Net worth, also known as shareholders' equity, represents the total assets minus total liabilities…
Q: The World Trade Organization was established to ____. track trade data for the world…
A: The World Trade Organization (WTO) is an international organization that deals with the global rules…
Q: חי alt_Midterm1.docx (100 KB) | A Alternative formats A. In February 2018, the current…
A: Approach to solving the question:Identify the economic conceptsBreak down the scenarioAnalyze the…
Q: Explain any four non-price factors affecting the demand.
A: FEEL FREE TO ASK FOR CLARIFICATIONS.
Q: Please give authentic answer to every part step by step and take a like
A: Question Explanation For understanding problem:The question asks us to analyze how a change in price…
Q: None
A: The question states that your utility function over money is u(x) = x^0.5, which means you have a…
Q: 3
A: First, we need to calculate the depreciation for each year using the MACRS 5-year property…
Q: Answer all parts (a)-(d) of this question.There are two goods in the economy: good x and good y with…
A: (a) Deriving Indifference CurvesThe indifference curves represent combinations of goods x and y that…
Q: Determine minimum thickness of a rigid pavement with doweled joints and without concrete shoulders.…
A:
Q: Question 2 - Consider a consumer with utility function U = x1 + x2 12, where is the labor supplied,…
A: Step 1:a)The constraints faced by the consumer in the short run are: Budget constraint: The consumer…
Q: Consider the Cobb-Douglas aggregate production function, Y = zF(K,N) = zKa N¹-a
A: Approach to solving the question:We have to find the relationship in terms of natural logarithm so…
Q: Review the budget constraint model that is introduced in Chapter 2. Then answer questions 3a through…
A: Jade's $24 weekly budget in the budget constraint model is represented by the following equation: Pm…
Q: Exercise 3.8. Find the Nash equilibria and the subgame-perfect equilibria of the following game. A 2…
A: To analyze this game, we will start by finding both the Nash equilibria and the subgame-perfect…
Q: please help me with 5.
A:
Q: Question 4 Part A: You have decided to invest in a project to build and run a production line for a…
A: The initial cost is a one-time cost incurred in Year 0. Therefore, its present value is simply the…
Q: Point (b) compared to point (e) (a) represents a higher level of utility. (b)…
A: Based on the graph, which appears to be depicting a market for a product, point (b) represents the…
Q: “Autonomous monetary policy is more effective at changing output when lambda is higher.” Is this…
A: Detailed Explanation: False.Lambda (λ) in this context refers to the sensitivity of the real…
Q: D Question 1 USING THE FOLLOWING INFORMATION AND THE FORMULA FOR CALCULATING TABLE WIN LOSS) GIVEN…
A:
Q: N @ # $ % & 2 3 4 5 6 7 8
A: If the economy is at full employment and gross investment decreases, the Fed should increase the…
Q: In Thailand, assume that market of grains (animal feeds) is perfectly competitive. Suppose…
A: Scenario: Prices of inputs used in grains production are increasing The increase in the inputs in…
Q: Question 2 a. As a student of Public Finance, discuss the political and economic implications of…
A: Step-by-Step Analysis of Government Borrowing in Lesotho Step 1: Evaluating the Need for…
Q: 5:08 Suppose there is a decrease in money supply, as a result interest rates will Multiple Choice O…
A: Option a) rise and the quantity of money will remain constant: This option is incorrect because…
Q: Anna just deposited $5,000 in her savings account. The current required reserve at her bank is 20%…
A: The money multiplier is a concept in economics that describes the maximum amount of commercial bank…
Q: The First National Bank of Hawkinstan currently offers 1% interest on all of its demand deposits,…
A: 1. Interest Paid on Demand Deposits: The bank pays 1% interest on $1,000,000 in demand…
Q: Please give authentication answer and take like
A: To find the right answer for a monopolist's profit maximization, we need to calculate marginal…
Q: None
A: The Gordon Growth Model, sometimes referred to as the Dividend Discount Model (DDM), can be employed…
Q: 46. How much labor will this firm employ and at what wage? (a) 20 units at $100…
A: A monopsony is a market structure where we have one buyer (the monopoly as a buyer), but many…
Q: A company wants to replace a current machine. It will cost$1,076,124. and 7years from now. If they…
A: To find out how much the company will still need to pay, we'll use the Future Value of an annuity…
Q: What would be the short-run equilibrium quantity produced by this firm if the market price were $25?
A: In case of perfect competition, the equilibrium occurs at a point where the price matches the…
Q: Answer all parts (a)-(d) of this question.There are two goods in the economy: good x and good y with…
A:
Q: PLS HELP ASAP ON BOTH
A: 1. SMART is an acronym that stands for Specific, Measurable, Achievable, Relevant, and Time-bound.…
Q: Solve all questions compulsory..... And fill in blanks and underline the correct sentence pls ....
A: Ans. ) The question consists of several parts. Following are the answers to the parts... Ans. a)…
Q: Exercise 3.8. Find the Nash equilibria and the subgame-perfect equilibria of the following game. A 2…
A: This logic makes sense in light of the previously mentioned Nash equilibrium (A,C). For the other…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: 1. Identify the Variables:Present Value (PV): This is the unknown amount you need to invest today to…
Q: The table below shows information for United Bank. Deposits Reserves Reserve Requirement $300…
A:
Q: Starbucks and Krispy Kreme are trying to decide whether or not to open a shop in the new Mall of…
A: Detailed Explanation: The Nash equilibrium in the payoff matrix for this game can be found by…
Q: Please help me with 1. Thank you
A: 1.aUsing the marginal revenue equation from the demand curve, we can determine the equilibrium…
Q: None
A: a.Let's calculate the monthly change in sales:Change from month 0 to 2: 2.1 - 0 = 2.1Change from…
Q: 3. (4) Two top shoe design houses, Vivace, and Mortissimo, can play it safe in the fall shows in…
A: Referenceshttps://en.wikipedia.org/wiki/Game_theory
Q: Price MC $5.50 ATC $5.00 $4.50 $3.00 $2.00 $1.75 55 110 MR 165 a. If this firm wants to maximize…
A: Detailed Explanation: Based on the graph, we can answer the following about the firm trying to…
Q: Suppose the current economy requires $7 million for transactions. The table below shows the interest…
A: FEEL FREE TO ASK FOR CLARIFICATIONS
Q: 5. Fred, a city politician is advocating for a new dock and pier system along the river to boost…
A: Approach to solving the question: Detailed explanation: Examples: Key references:
Q: don't use chatgpt answer i will 6 upvotes and clear step by step explanation in case you worng i…
A: In economics, the marginal cost is the change in the total cost that arises when the quantity…
Q: To Next three questions will be based on the following information: 33 عرب 3 39. 40. 41. Labour…
A: The relative price of trade is determined by the opportunity cost of producing one good over the…
Q: Explain fixed cost and variable cost.
A: Fixed cost: Fixed costs are expenses that do not change with the level of output or production in…
Q: Student question do fas i will 10 upvotes don't use chatgpt answer. The downturn in output and…
A: When the US housing market's ten-year expansion peaked in 2006 and residential construction started…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: The correct answer is: housing and education are complements for Tito and substitutes for…
Q: Suppose the reserve requirement is set at 20 percent and excess reserves are $27 million. What is…
A: The money multiplier is a measure of the amount of money that banks generate with each dollar of…
Q: 33 (a) Consider the rod-cutting problem discussed in lecture. Suppose we are given the following…
A: Approach to solving the question: To solve the rod-cutting problem and find the maximum revenue for…
Step by step
Solved in 2 steps
- 3. Suppose you are a manufacturer of milk and it produces 900 liters and sells it for $ 15 Lt and due to social development policies, the government decides that the price of the good should be lowered by one peso, therefore it should be sold at $ 14 per liter, with which people will have more access to buy it and will influence an increase in the quantity demanded, now having to produce 1,300 liters of the good. a. Determine the elasticity of demand.b. Determine the degree of Lerner's monopoly power.In 2018, a cold front in Barbados increased both the demand for water heaters andgasolines. The usage of gasoline was 581 tonnes, an increase from 499 tonnes in theprevious year. The Petroleum Company of Barbados advised Government officials thatdemand could outweigh supply and asked companies to increase the supply. They alsoasked major gasoline users, such as power plants, to reduce demand. i. Illustrate the effect of the cold front on the demand for gasoline using a demandcurve diagram over the two years. ii. Assuming the Petroleum Company of Barbados did not issue a directive for anincrease in supply and a decrease in demand, explain the problem that would existin the economy and how would this be corrected over time.Suppose 1000units of product A are produced by XYZ limited but the quantity demanded for the product is 2000units. All other things remaining constant,a $18 change in price of product A results in a change in quantity demanded and supplied of 6 and 9 respectively.XYZ has a work force of 500 people who pay an income tax of $200 each to the government. 1.Calculate the new equilibrium price and quantity,suppose the government introduces a subsidy of $10 on each unit of product A.
- Suppose the market demand and supply curves are as given below. In each case, quantity refers to milions of litres of gasoline per month; price is the price per litre (in cents). Pa400 - 240 Supply: P= 160 + 80 Given these demand and supply equations, the equilbrkum price is 220 cents and the equilibrium quantity is 7.5 milion litres. Suppose the government imposes a tax per itre, and as a result the quantity sold is 5.8 million litres. What is the new "consumer price" and what is the new "producer price"? The new price consumers pay is 260.8 cents. (Enter your response rounded to the nearest cent.) The new price producers receive is cents. (Enter your response rounded to the nearest cent.)In 2018, a cold front in Barbados increased both the demand for water heaters andgasolines. The usage of gasoline was 581 tonnes, an increase from 499 tonnes in theprevious year. The Petroleum Company of Barbados advised Government officials thatdemand could outweigh supply and asked companies to increase the supply. They alsoasked major gasoline users, such as power plants, to reduce demand. Illustrate the effect of the cold front on the demand for gasoline using a demandcurve diagram over the two years.Only typed answer and please don't use chatgpt (I)Consider the market for milk in Saskatchewan. If p is the price of milk (cents per litre) and Qis the quantity of litres (in millions per month), suppose that the demand and supply curves formilk are given by: Demand: p = 225 -15QD Supply: p = 25 + 35QS a.Assuming there is no government intervention in this market, what is the equilibrium price and quantity? Equilibrium Price = $165 Quantity = 4Liters b. Now suppose the government guarantees milk producers a price of $2 per litre and promises to buy any amount of milk that the producers cannot sell. What are the quantity demanded and quantity supplied at this guaranteed price? Please answer B.
- A low-income country decides to set a price ceilingon bread so it can make sure that bread is affordable tothe poor.Table 3.11 provides the conditions of demandand supply. What are the equilibrium price andequilibrium quantity before the price ceiling? What willthe excess demand or the shortage (that is, quantitydemanded minus quantity supplied) be if the priceceiling is set at $2.40? At $2.00? At $3.60?0941 40 40 l 9:40 g) 4G. 83% In Country Faraway, cigarettes 10points are forbidden, so people trade cigarettes in ablack market. The cigarette demand is QD = 12 - P %3D , and the cigarette supply is Qs = 2P. (Attempt this question on %3D paper and upload on google classroom). Find the equilibriumrice and quantityinthe black market. Shot on Y11 2021.04.08 10:58 Vivo Al cameraThe market demand for productXis given by: \[ Q_{d}=6-1 / 2 P \text { or } P d=12-2 Q \] The market supply for goodXis given by: \[ Q_{s}=-14+2 P \text { or } P s=7+1 / 2 Q \] whereP=price per unit andQis number of units. Draw a supply-and-demand graph with these curves. 1.) Using the line drawing tool, draw the supply and demand curves. Properly label your lines. 2.) Using the point drawing tool, plot the equilibrium point. Label your point 'E'. Note: Carefully follow the instructions above and only draw the required objects. The equilibrium price is$and the equilibrium quantity is unit(s). (Enter your responses as integers.) A per-unit excise tax is imposed on suppliers of productX, and the market supply with the tax is now given by: \[ Q_{s}=-19+2 P \text { or } P s=9.50+1 / 2 Q \] Using the graph on the right, show this supply curve. 1.) Using the line drawing tool, draw the new supply curve. Label your line 'S1+tax'.1. Note: Carefully follow the instructions above and only draw…
- Why would a free market never operate at aquantity greater than the equilibrium quantity? Hint:What would be required for a transaction to occur at thatquantity?For this question, the demand is P = 145 - 3Q & supply is P = 35 + 2Q. To enable more citizens to buy more gasoline, the Government decides to give gasoline producers a subsidy of $5 per unit- Using the supply and demande quations from #2. What price will consumer's pay and how much gasoline will they buy (note the answersm ay be fractions or in decimal points)? How much will the Government spend on the subsidy? What will be the change in producer surplus?b) In a hypothetical situation, Government of Pakistan wants to put a curb on cigarette smoking through economic policy: i. Studies indicate that the price elasticity of demand for cigarettes is about 0.5. If a pack of cigarettes currently costs Rs.200 and the government wants to reduce smoking by 22 percent, by how much should it increase the price? ii. If the government permanently increases the price of cigarettes, will the policy have a larger effect on smoking one year from now or five years from now? iii. Studies also find that teenagers have a higher price elasticity of demand than adults. Why might this be true?