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What would be the impact of funding the Social Security program with tax increases on the number of hours worked and on the amount of taxes collected to fund?
Why isn't the combination of consumer and producer surplus maximized if there is either excess demand or supply?
You should hesitate to raise your price, and that lowering price can possibly increase profits (total revenue minus total cost). Why is the word possibly used?
What does this suggest about tuition increases at prestige schools in the future? Why don't colleges raise tuition by amounts even greater than they already do?
Why would an economist be more hesitant about making an elasticity estimate of the effect of an increase in price of 1 percent rather than an increase in price
Can you think of an explanation why? Can you think of other products besides coffee whose standard size has shrunk?
How do managers use a measure of elasticity of demand to determine the price they charge? If they don't use elasticities, how do they set price?
Price elasticity is not just a technical economic concept. Why Should anything be done about those inequities? (Radical)
In the box Geometric Tricks for Estimating Price Elasticity. Can you prove that that is true by algebraic manipulation of the elasticity formula?
If quantity demanded increases by 18 percent, what is the price elasticity of demand?
If the price rises 10 percent and the initial quantity sold is 10 million gallons, what is the range of estimates of the new quantity demanded?
If there were only two goods in the world, can you say whether they would be complements or substitutes? Explain your answer.
Demonstrate the welfare loss of a restriction on output when supply is perfectly elastic, A tax t placed on suppliers and A subsidy s given to suppliers.
WWhat does this tell you about the nature of the labor market in Vermont? What policy implications does your answer to a suggest? (Institutionalist)
Show why the poll tax is preferable to a property tax in terms of consumer and producer surplus. What do you think real-life consequences of the poll tax were?
How does that approach to thinking about issues fit with the economic analysis that focuses on consumer and producer surplus? (Religious)
Who bears the burden of Social Security taxes in each case? Illustrate your answer with two labor market diagrams.
What does that framework leave out of the analysis? How might one frame the analysis differently?
What alternatives to taxation could a country consider to collect the revenue it needs to operate? (Austrian)
Should tenants who rent apartments worry that increases in property taxes will increase their rent? Does your answer change when considering the long run?
If the federal government wanted to tax a good and suppliers were strong lobbyists. Would government prefer supply or demand to be more inelastic? Why?
Suppose demand for cigarettes is inelastic and the supply of cigarettes is elastic. Who would bear the larger share of the burden of a tax placed on cigarettes?
Which good would an economist normally recommend taxing if government wanted to minimize welfare loss and maximize revenue.
Calculate the percentage of the tax borne by the demander and supplier in each of cases. Summarize your findings regarding relative elasticity and tax burden.
Assuming nothing else changes, what do you expect to happen to the resulting shortage of jobs as time progresses?