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Examine the major industries and transportation data. What is the GDP and the GDP per capita using Purchasing Power Parity (PPP)?
What is the diamonds-water paradox, and how is it explained? Use the same reasoning to explain why bottled water costs so much more than tap water.
In many amusement parks, you pay an admission fee to the park but you do not need to pay for individual ride. Analyze how do people choose which rides to go on?
What would be the impact of a reduction in co-payments? What is the impact on consumer surplus of offering some coverage for prescription medication?
Given that slope of this linear demand curve is -0.25, draw a supply and demand graph to illustrate consumer surplus that occurs when market is in equilibrium.
Analyze what must be true about the equilibrium relationship between the marginal utility levels of the last dollar spent on each good?
Assuming that the consumer is in equilibrium and is consuming both X and Y, what must the marginal utility of Y be?
If the price of a cookie is less than the price of candy, is the consumer in equilibrium? Why or why not? What should the consumer do to attain equilibrium?
How is this practice related to diminishing marginal utility? What restrictions must the restaurant impose on the customer to make a profit?
But so many jobs were lost in the boat-building industry that the measure was finally repealed. What did Congress get wrong in imposing this luxury tax?
Using demand and supply curves, show how much tax is collected. How would this tax revenue change if the supply curve becomes less elastic?
Under what conditions of demand and supply elasticities will this occur? Under what conditions will little of the tax be passed on to consumers?
Illustrate the effects of the tax on the price and quantity of coffee, labeling the new values as P2 and Q2.
Innovations in seed corn have dramatically increased the productivity of U.S. corn producers. Show the equilibrium price and quantity.
Illustrate the effect of an increase in consumer sensitivity to price by drawing in a new demand curve, D1, that passes through P but is more elastic than D.
Illustrate the effect of an increase in the elasticity of supply by drawing in a new supply curve, S1, that passes through P but is more elastic than S.
How will the change affect the quantity demanded of the item described? How will it affect the demand for substitutes and complements to that item?
What areas in the figure would you use to illustrate the net change in farmers' total revenue as a result of the increase in supply?
How much the diagram would cost the government. By how much would farm income change compared to what it would have been without government intervention?
Review the material presented there and determine to what extent agricultural issues? What role does economics play in the analysis of EU farm policy?
Find a description of some technological change that might affect household production. Explain how production would be affected.
How would you interpret Landes's story about mechanization using the ideas developed in this chapter?
(International Trade) Distinguish between a tariff and a quota. Who benefits from and who is harmed by such restrictions on imports?
(Objectives of the Economic Decision Makers) In economic analysis, what are the assumed objectives of households, firms, and the government?
What are the sources of government revenue in the United States? Which types of taxes are most important at each level of government?