Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Solved Assignments
Asked Questions
Answered Questions
Suppose initially the price of songs is $0. How many songs will Janis play? Illustrate with a graph. Compute the loss in consumer surplus from the tax.
Suppose the price elasticity of the supply of heating oil is 1.0 and the price elasticity of demand. What fraction of the tax is passed forward to consumers?
Draw the marginal-benefit and marginal-cost curves and show the optimum level of pollution abatement.
What is the threshold number of insurance companies the number at which each insurance company will be indifferent about providing free LoJack systems?
Propose a solution to this problem. Describe a transaction that would benefit the fishers and the landowner.
Will any single citizen provide the display on his or her own? Describe a transaction that would benefit all three citizens.
Will a confused student ask a question when it would be socially efficient to do so? Design an incentive system to generate efficient questioning.
Visit the Web site of Defenders of Wildlife. Then design a system that will generate the socially efficient outcome.
Suppose the town asks for voluntary contributions to support the network. Would you expect the total contributions to cover the $20,000 cost?
In return, the new gates would be designated for the exclusive use of Gotcha. What trade-offs are associated with accepting Gotcha s offer?
Your city is considering an airport-expansion project that would increase. How does the benefit to consumers compare to the cost of the project?
Compute the consumer loss associated with the merger. How does it compare to the increase in profit? What is the net loss from the merger?
Her boss also gave her the Web address for YellowPages. How can she use the information in the disks and YellowPages to make a prediction?
How does the acquisition affect X s annual profit? How many years will it take for X to recover the cost of acquiring Y?
Suppose that BPA spends $100 million to make its hydroelectric dams less hazardous for migrating fish. Who will bear the cost of this program?
Use a graph to show the effects of introducing Internet service on the reservation price for a consumer good.
In 2010 a leading insurance company started a policy that pays a policy holder a 5 percent rebate. What problem is the policy trying to solve?
Consider an insurance company that provides group medical coverage for university employees. What is the rationale for increasing the price?
Suppose insurance companies have access to the results of genetic tests and they require. How will the insurance company change its price of X insurance?
Willingness to Pay for Use Baseball Pitchers. Suppose a healthy baseball pitcher is worth $5 million per year to his team. What are the executive s assumptions?
Suppose consumers are pessimistic, expecting all sour kiwifruit. Is this an equilibrium? Illustrate with a graph. What is the price of kiwifruit?
How much is the typical buyer willing to pay for a used car in the mixed market? Is the $16,000 price an equilibrium price? Why or why not?
Suppose you could pay a finders fee to a personal shopper/mechanic who will find you a plum. What is the maximum you are willing to pay as a finders fee?
In equilibrium, will the market be thin or will all the used MP3 players in the market belemons? Explain and illustrate your answer with a complete graph.