As the expected future exchange rate for dollars increases
A) the demand for U.S. dollars increases.
B) the supply of U.S. dollars decreases.
C) both the demand for U.S. dollars and the supply of U.S. dollars increase
D) Both answers A and B are correct.
D
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Instead of a uniform standard, suppose each firm faces a volume-based, marginal effluent fee (MEF) of $90. How much will each firm abate?
Among the identified point sources contributing to the pollution of Puget Sound are Dow Chemical (D) and Chevron (C). Each firm's cost functions are shown below. MACD = 2.5AD MACC = 3.75AC TACD = 1.25AD2 TACC = 1.875AC2 To meet the effluent limits under the Clean Water Act, each firm has an NPDES permit to release some fixed amount of effluents, so each must abate 30 units.
Refer to the above graph with three demand curves. An "increase in quantity demanded" would be illustrated by a change from:
Point 5 to point 1 Point 2 to point 5 Point 4 to point 6 Point 4 to point 1