Suppose a tax of $10 per unit is imposed on this market. What will be the new equilibrium quantity in this market?
A. less than 70 units
B. greater than 100 units
C. 70 units
D. between 70 units and 100 units
D. between 70 units and 100 units
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Answer the following statement(s) true (T) or false (F)
1. The future value (FV) of a dollar is its present value (PV) plus the opportunity cost of not using that dollar in the present period. 2. The term, 1/(1 + r)t is known as the discount rate, where r represents the discount factor. 3. Present value determination is a procedure that corrects a value for the rate of inflation. 4. The discount rate used for public policy decision making is called the social discount rate. 5. Deflating refers to the process of converting a real value into its nominal value.
Describe the effects of contractionary monetary policy by the domestic central bank on output, the real interest rate, and net exports in both the domestic and foreign country, using a Keynesian model in the short run
What happens in the long run? Show a diagram to illustrate the short- and long-run effects in both countries.
Refer to Figure 9.2. At price 0E and quantity Q*, the deadweight loss is
A) 0ACQ*. B) 0ECQ*. C) 0FCQ*. D) EFC. E) none of the above
Demand for a good is said to be inelastic if the quantity demanded increases slightly when the price falls by a large amount
a. True b. False Indicate whether the statement is true or false