Suppose the market for grass seed can be expressed as
Demand: QD = 100 - 2p
Supply: QS = 3p
At the market equilibrium, calculate the price elasticities of supply and demand. Use these numbers to predict the change in price resulting from a specific tax.
At p = 20 Q = 60, e = -2 ? (20/60 ) = -0.67. n = 3 ? (20/60 ) = 1.
The change in price resulting from a specific tax = [n/(n - e)] ? tax = [1/1.67] ? tax = 0.6 ? tax.
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Suppose the CPI last year was 82.3 and this year is 90.9. Based on this information, we can calculate that the inflation rate in 1981 was
A) 10.4 percent. B) 8.6 percent. C) 90.9 percent. D) 82.3 percent. E) 9.09 percent.
What is the formula for calculating average fixed cost? If a firm has fixed costs of $8,500 per month and produces 1,900 units of output per month, what is its average fixed cost?
What will be an ideal response?