10. In 2012, the Nigerian government removed a subsidy on fuel. One critic of the removal of the subsidy argued that the government was unable to clearly articulate how this would benefit Nigerians, stating, "They made economic arguments that were abstract at best and nonsensical at worst." See if you can do a better job at explaining the rationale for removing subaidu. II ff without the baidu?
Q: Beer 10 O 20 30 Pizza West Lothian 10 Beer 20 1319 10 0 20 30 Pizza East Lothian 10 In the…
A: Opportunity cost refers to losing cost of the best alternative because we choose different…
Q: on the following graph, shift the curve or drag the blue point along the curve, or do both, to show…
A: It can be defined as a form of graphical of the concept of economics which shows the rate of…
Q: Keep Prices Advertise (15,5) Lower Prices O Advertise; lower prices Firm 1 Not advertise; lower…
A: Nash equilibrium is a situation where no player has an incentive to deviate from the strategy of…
Q: a) What is Alberto's total consumer surplus if the price per ticket is $16.5? Round your answer to…
A: Consumer surplus is the difference between the maximum price a consumer is willing to pay for a…
Q: Discuss why Ei(p∗) = 0 is compatible with a competitive equilibrium.
A: In competitive marketplaces with freely determined prices, competitive equilibrium occurs when…
Q: Based on the best available econometric estimates, the market elasticity of demand for your firm's…
A: Given:MC: Marginal CostN is the number of firms in the marketFormula:
Q: Suppose the nominal interest rate on savings accounts is 11% per year, and both actual and expected…
A: Unexpected inflation is the inflation experienced that is above or below what was expected. It…
Q: Macmillan Learning (Table: Total Cost and Total Individual Benefit Received from Sanitation Workers)…
A: The social benefits arise when a product or service causes a positive effect on society as a whole…
Q: Because this market is monopolistically competitive, you can tell that it is in long-run equilibrium…
A: Monopolistic Competition is a market structure where there are a large number of buyers and sellers;…
Q: [Adverse Selection] Each of the two players receives an envelope, in which there is an amount of…
A: Game theory influences many elements of modern civilization, from pricing methods and efficacy to…
Q: 8. Natural monopoly analysis The following graph gives the demand (D) curve for satellite TV…
A: A single-seller market that decides its own price is called a monopoly market. Marginal revenue is…
Q: From the article: While Columbus Washboard appears to hold a monopoly, there arent indications it…
A: A monopoly refers to a market structure in which a single seller or entity dominates the supply of a…
Q: A secondary road in a developing country, 20 km long is to be improved by surface treating the…
A: In economics and finance, the benefit-cost ratio (BCR) or benefit-to-cost ratio is an indicator used…
Q: Are their any copyrights, trademarks, patents, or trade secrets needed to consider for an e-commerce…
A: The objective of the question is to understand the intellectual property considerations for an…
Q: A
A: Businesses employ the microeconomics idea of profit maximisation to determine prices, output, and…
Q: What are some strategies for protecting consumer privacy on an online e-commerce platform selling…
A: The objective of this question is to identify strategies that can be used to protect consumer…
Q: You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it…
A: Present value is the current worth of a sum of money that will be received or paid in the future.…
Q: In the long run, output gaps are eliminated by A. Reducing potential output. B. Increasing…
A: In the long run, output gaps are typically eliminated by:B. Increasing potential output.This…
Q: What benefits are their in operating a business to consumer online business model for consumers and…
A: The objective of this question is to understand the benefits of operating a business to consumer…
Q: , an amount Madison's profit is maximized when they produce a total of 5 phone cases. At this…
A: Marginal Revenue is the revenue that an additional unit of the product or service will bring to the…
Q: Classify each statement as either true or false. A tournament compensation scheme is subject to…
A: Tournament Theory:-Tournament theory is a concept in manpower economics that describes scenarios in…
Q: A risk-averse expected-utility maximizer has initial wealth w0 and utility function u. She facesa…
A: The objective of the question is to determine the expected utility of a risk-averse individual who…
Q: What is the overhead cost for a company? The profit desired Labor costs The cost of doing business…
A: Running a successful business involves navigating various costs that contribute to the overall…
Q: The economy of Carlsberg is presently in equilibrium, but is suffering a recession as depicted in…
A: Aggregate expenditure describes the total amount of spending in the economy through consumption,…
Q: 10.3. Pet health care. As documented in a recent paper, the markets for pet health care and human…
A: The comparison between pet health care and human health care markets, as outlined in your question,…
Q: a) Assume a 1% reserve ratio. The potential money multiplier = A b) Using the calculated potential…
A: To answer these questions, we need to understand the concept of the money multiplier in the context…
Q: In a closed economy, desired consumption is Cd=2000+0.9Y- 100,000r-T, and desired investment is Id =…
A: Real GDP refers to the measure of income or output of an economy where the changes in price levels…
Q: Consider a market with the following supply and demand. (It may help to draw a graph for these…
A: Since you have posted a question with multiple sub-parts, we will provide the solution only to the…
Q: Imagine you are a manager at Power Boost Waters. Your company is known for producing bottled water…
A: Marginal cost is a fundamental concept in economics that represents the additional cost incurred by…
Q: Figure 2. PRICE LEVEL 70 к AD₂ QUANTITY OF OUTPUT 9 AD, AD₂ Refer to Figure 2. An increase in taxes…
A: Aggregate demand is the sum of consumption, investment, government spending and net export. This…
Q: The people in an economy have $20 million in money. Bank hold 1% of the deposits as reserves. What…
A: The people in an economy have $20 million in money. Bank hold 1% of the deposits as reserves.
Q: Pretend that the country is in a normal economic climate. Suppose that the Federal Reserve,…
A: The Federal Reserve has announced to initiate the purchase of $2 million worth of treasury and other…
Q: The following graph shows the demand (marginal private benefits, or MPB) and supply (marginal…
A: Externalities occur when there is an indirect impact on a party that is not directly related to the…
Q: a) What is the minimum level of the wage for which an old worker will choose to work at this firm…
A: The minimum level of the wage for which an old worker will choose to work at this firm and exert…
Q: How do you draw the mundell-Fleming model for the USA's economy during the gold standard. It had low…
A: The Mundell-Fleming model, also known as the IS-LM-BP model, is an economic framework that combines…
Q: Suppose there were an increase in Government spending of $100 billion. The MPC is 75 andthe tax rate…
A: Crowding out is a concept in economics where the government of a country tends to increase their…
Q: What is diminishing Musharka, Suggest a way that how Islamic Financing can be done under this mode…
A: Since you have posted two independent questions, according to our guidelines, only the first…
Q: Which of the following properties characterizes a perfectly competitive market? [(i) through (iv)…
A: The objective of the question is to identify the properties that characterize a perfectly…
Q: 1. How is lending money to others complicated. by adverse selection and moral hazard?
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: • Assume that Supply has a quadratic relationship with the price. Find this relationship (the help…
A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…
Q: In the above table, if this is a perfectly competitive firm and the market price of the product is…
A: In a perfectly competitive market, there are several key features that distinguish it from other…
Q: Entrepreneurial activities may be harmful to economic growth in economies that are passing through…
A: ***Since the study table 5 has not been presented, so, subparts 1.2 and 1.3 cannot be solved. If the…
Q: A number of stores offer film developing as a service to their customers. Suppose that each store…
A: The study of how firms make decisions and allocate resources in the face of restrictions is known as…
Q: c. Predict how each chanage will affect interest rates. Increase interest rates C. A financial…
A: Interest rates refer to the cost of borrowing money or the return earned on an investment, usually…
Q: Figure: Producer Surplus Price of book $45 35 Y 15 5 drew Donna Reference Ref 6-6 Chartes Quantity…
A: Producer surplus is the difference between the revenue received and revenue expected on certain…
Q: Consider an agent that makes long-run and short-run commitment concerning owning a house and a car.…
A: Demand elasticity measures how sensitive a good's quantity desired is to variations in its price. It…
Q: The following graph illustrates the labor market for the state in the West. The government in this…
A: An individual’s willingness to pay for each unit of the quantity he or she wishes to consume is…
Q: 1) Which of the following statements is/are correct i. At the maximum point of the total product…
A: Total Product is the total quantity of goods produced by a firm during a given period of time…
Q: The marginal rate of substitution is the slope of an indifference curve. True False
A: Indifference curve basically refers to a graphical representation of all possible combination of two…
Q: If the MARR is 5%, compute the value of 'X' that makes the two alternatives equally desirable. Cost…
A: The MARR value is given as 5%.The table consisting of cost, benefit, salvage value and useful life…
Step by step
Solved in 3 steps
- Graph the following data on social and market demand: Im pretty sure I have the graph correct but I am unsure how to find the anwsers to the questions. Price ($) 20 18 16 14 12 10 Market quantity demanded (units per month) 10 20 30 40 50 60 Social quantity demanded (units per month) 20 30 40 50 60 70 Does this product have external benefits or external costs? How large ($) is that externalityHow will. each of the following demand and Leeppy affecte eqpelibniuem Prkce and equilibrium quantity Competitive in market: @Supply deereases and demand iK constantTable 3.8 shows information on the demand andsupply for bicycles, where the quantities of bicycles aremeasured in thousands. a. What is the quantity demanded and the quantitysupplied at a price of $210?b. At what price is the quantity supplied equal to48,000?c. Graph the demand and supply curve for bicycles.How can you determine the equilibrium priceand quantity from the graph? How can youdetermine the equilibrium price and quantityfrom the table? What are the equilibrium priceand equilibrium quantity?d. If the price was $120, what would the quantitiesdemanded and supplied be? Would a shortageor surplus exist? If so, how large would theshortage or surplus be?
- China is a major producer of grains, such aswheat, corn, and rice. Some years ago, the Chinesegovernment, concerned that grain exports weredriving up food prices for domestic consumers,imposed a tax on grain exports.a. Draw the graph that describes the market for grainin an exporting country. Use this graph as thestarting point to answer the following questions.b. How does an export tax affect domestic grainprices?c. How does it affect the welfare of domesticconsumers, the welfare of domestic producers,and government revenue?d. What happens to total welfare in China, asmeasured by the sum of consumer surplus,producer surplus, and tax revenue?Your grandmother likes old-fashioned yard salesand doesn’t understand why everyone is so excitedabout eBay. Explain to her why the creation of amarket that enables people who don’t live in thesame town to buy and sell used goods increasestotal surplus over the yard-sale market.18. The U.S. Senate is considering a bill that would tax the sale of laptop computers in order to fund a computer educa- tion program for presidential hopefuls. The Congressional Budget Office (CBO) estimates that if it implements a low tax of $12 per laptop, revenue should be sufficient to exactly fund the program. The CBO also estimates that a high tax of $230 per laptop will exactly fund the program. a. How can a low tax and a high tax raise exactly enough money to fund the program? Illustrate your answer using a graph. b. Suppose that you are an economic advisor to the Senate Finance Committee, tasked with analyzing the economic impact of the tax proposals. Which proposal do you recommend, and why?
- 16. What is the difference between an agricultural export subsidy and an agricultural production subsidy?The following graph shows the supply curve for a group of students looking to sell used graphing calculators. Each student has only one used calculator to sell. Each rectangular segment under the supply curve represents the "cost," or minimum acceptable price, for one student. Assume that anyone who has a cost just equal to the market price is willing to sell his or her used calculator. 300 250 Rosa 200 Area: 200 Nick 150 Latasha A O 100 Jake Frances 50 Dmitri 2 3 6 QUANTITY (Used calculators) PRICE (Dollars per used calculator) B.In an effort to reduce alcohol consumption, the government is considering a tax$1 for every gallon of liquor sold (tax imposed on manufacturers). Supposethe demand curve is Q D = 500,000 - 20,000 P (where Q D is the number of gallons of drinkliquor demanded and P is the price per gallon), and the liquor supply curve isQ S = 30,000 P (where Q S is the number of gallons supplied).a. Calculate how the tax affects the price paid by consumers and the price paidaccepted by the manufacturer.b. What is the tax revenue for the government? How much incomecome from consumers, and how much from producers?c. Suppose the demand for liquor is more elastic for younger drinkers thanolder drinker. Will the liquor tax be more, less, or the sameeffective in reducing alcohol consumption among young drinkers?Explain.
- mples of price gouging Answ x 18/1 O Resources x Give Up? O Him Suppose the graph depicts a hypothetical market for concert tickets at a local college venue. Because students are paying Market for Concert Tickets 100 such high prices, a price ceiling of $40 per concert is being considered. Move the price ceiling line to correctly depict the price 90 80 ceiling of $40. 70 60 By how much does consumer surplus (CS) change if the ৪ 50 price ceiling is imposed? 40 Price ceiling 30 $ 20 10 By how much does producer surplus (PS) decrease if the price ceiling is imposed? 10 20 30 40 50 60 70 80 90 100 Quantity (tickets) 2$ What is the value of the deadweight loss (DWL) associated with this price ceiling? bp 14yes at of BRy Price ($)Suppose that an environmentally polluted area of land is cleaned up. After the clean-up, the supply of land increases from 5 acres to 7 acres. a. Using the supply-and-demand model below, show how the supply of land changes as a result of the clean-up. Instructions: Use the tool provided 'Supply2' and plot only the endpoints of the line such that the first point touches the horizontal axis. Market for Land 50 Tools S 45 40 Supply2 35 30 25 20 15 10 1 2 4 7 8. 9. 10 Quantity (acres of land) Instructions: Enter your answer as a whole number. b. Using your graph, after the change in supply, the total value of economic rent for all acres of land (Click to select) ♥ by Land rent (dollars)One of the largest changes in the economy over thepast several decades is that technological advanceshave reduced the cost of making computers.a. Draw a supply-and-demand diagram to showwhat happened to price, quantity, consumersurplus, and producer surplus in the market forcomputers.b. Forty years ago, students used typewriters toprepare papers for their classes; today theyuse computers. Does that make computersand typewriters complements or substitutes?Use a supply-and-demand diagram to showwhat happened to price, quantity, consumersurplus, and producer surplus in the marketfor typewriters. Should typewriter producershave been happy or sad about the technologicaladvance in computers?c. Are computers and software complements orsubstitutes? Draw a supply-and-demand diagramto show what happened to price, quantity,consumer surplus, and producer surplus in themarket for software. Should software producershave been happy or sad about the technologicaladvance in computers?d. Does this…