Homework Answers
when tax is applied on firms ,
which can't be passed on to the consumers, then demand for Labor by
firms will fall, so Labor Demand curve will shift inwards.
While Labor supply being unchanged, so new equilibrium at intersection of new Demand curve & old supply curve
Where both equilibrium wages & employment falls
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Suppose that under a new law all businesses must pay a tax equal to 6% of...
Suppose that under a new law all businesses must pay a tax equal to 6% of...
Suppose that under a new law all businesses must pay a tax equal
to 6% of their sales revenue. Assume that this tax is not passed
on to consumers. Instead, consumers pay the same prices after the
tax is imposed as they did before.
1.) Use the line drawing tool to show the effect of this change
on the labor market. Properly label your new line.
2.) Use the point drawing tool to identify the new equilibrium
real wage and...
Suppose that under a new law all businesses must pay a tax equal to 6% of...
Suppose that under a new law all businesses must pay a tax equal
to 6% of their sales revenue. Assume that this tax is not passed
on to consumers. Instead, consumers pay the same prices after the
tax is imposed as they did before.
1.) Use the line drawing tool to show the effect of this change
on the labor market. Properly label your new line.
2.) Use the point drawing tool to identify the new equilibrium
real wage and...
Suppose that there is an increase in the capital stock. 1.) Using the line drawing tool,...
Suppose that there is an increase in the capital stock. 1.) Using the line drawing tool, show the effect of this change on the labor market. Properly label your new line. 2.) Using the point drawing tool, identify the new equilibrium real wage and employment. Label this point 'F' Carefully follow the instructions above, and only draw the required objects. NS 0 ND
Heneon 1doouno an excise tax of $2 per session on tanning salons. E represents the initial...
Heneon 1doouno an excise tax of $2 per session on tanning salons. E represents the initial equilibrium The government recently imposed before the excise tax. Determine the effect of the excise tax on the market for tanning sessions. 1.) Using the line drawing tool, draw either a new supply or demand curve that illustrates the imposition of the tax. Properly label your line. equilibrium point. Label the point 'E2 2.) Using the point drawing tool, plot the new Carefully follow...
The United States is increasingly outsourcing jobs to India which means that work is done in...
The United States is increasingly outsourcing jobs to India
which means that work is done in India rather than in the United
States.
For example, the Indian firm Tata Consultancy Services, which
provides information-technology services, increased its work force
by 70,000 workers in 2010 and expected to add 60,000 more in
2011 ("Outsourcing Firm Hiring 60,000 Workers in India," San
Francisco
Chronicle,
June 16, 2011). As a result of increased outsourcing, wages of
some groups of Indian skilled workers have...
supply curve to shift leftward to SRAS, as shown in the graph at right. The economy is currently in short-run equilibrium at point E, and the reduction in supply is expected to be permanent. LRAS...
supply curve to shift leftward to SRAS, as shown in the graph at right. The economy is currently in short-run equilibrium at point E, and the reduction in supply is expected to be permanent. LRAS SRAS SRAS 1.) Using the line drawing and/or 3-point curved line drawing tool, show the adjustment to long-run equilibrium in this situation. Properly label your new curve(s). 2.) Using the point drawing tool, identify the new long-run equilibrium point and label the point 'E2 Carefully...
The figure to the right depicts the bond market. Show what will happen to interest rates...
The figure to the right depicts the bond market. Show what will happen to interest rates if prices in the bond market become more volatile. 1. Using the line drawing tool, show the effect of this shock on the bond market. Properly label your line, 2. Using the point drawing tool, indicate the new equilibrium bond price and quantity. Label the point 2. Carefully follow the instructions above, and only draw the required objects. The effect of this shock will...
Until 2012, California, Texas, and Pennsylvania required firms to collect sales taxes for online sales if...
Until 2012, California, Texas, and Pennsylvania required firms
to collect sales taxes for online sales if the chain had a physical
presence (a "brick" store as opposed to a "click" store) in those
states.
Thus, those states collected taxes on Best Buy's online
sales, because it had stores in each of those states, but they did
not collect taxes from Amazon.com because it did not have physical
locations in those states.
Starting in 2012, Amazon had to pay taxes in...
The following table shows Ellie's utility from consuming slices of cake and cans of Pepsi. Suppose...
The following table shows Ellie's utility from consuming slices
of cake and cans of Pepsi.
Suppose Ellie has $12 per week to spend on cake and Pepsi and that
the price of a slice of cake is $2.00.
1.) Use the point drawing tool to plot Ellie's demand for Pepsi
at a price of $2.00. Label this point 'A'.
2.) Use the point drawing tool to plot Ellie's demand for Pepsi
at a price of $4.00. Label this point 'B'....
Refer to the diagram to the right: 1) Use the line drawing tool to draw a...
Refer to the diagram to the right: 1) Use the line drawing tool to draw a demand curve that shifts to the right. Label this line 'De 2) Use the line drawing tool to draw a supply curve that shifts to the right by less than the demand line. Label this line 'S 3) Use the point drawing tool to identify the new point of equilibrium. Label this point 'B' Price Carefully follow the instructions above, and only draw the...
Suppose that under a new law all businesses must pay a tax equal
to 6% of their sales revenue. Assume that this tax is not passed
on to consumers. Instead, consumers pay the same prices after the
tax is imposed as they did before.
1.) Use the line drawing tool to show the effect of this change
on the labor market. Properly label your new line.
2.) Use the point drawing tool to identify the new equilibrium
real wage and...
Suppose that under a new law all businesses must pay a tax equal
to 6% of their sales revenue. Assume that this tax is not passed
on to consumers. Instead, consumers pay the same prices after the
tax is imposed as they did before.
1.) Use the line drawing tool to show the effect of this change
on the labor market. Properly label your new line.
2.) Use the point drawing tool to identify the new equilibrium
real wage and...
Suppose that there is an increase in the capital stock. 1.) Using the line drawing tool, show the effect of this change on the labor market. Properly label your new line. 2.) Using the point drawing tool, identify the new equilibrium real wage and employment. Label this point 'F' Carefully follow the instructions above, and only draw the required objects. NS 0 ND
Heneon 1doouno an excise tax of $2 per session on tanning salons. E represents the initial equilibrium The government recently imposed before the excise tax. Determine the effect of the excise tax on the market for tanning sessions. 1.) Using the line drawing tool, draw either a new supply or demand curve that illustrates the imposition of the tax. Properly label your line. equilibrium point. Label the point 'E2 2.) Using the point drawing tool, plot the new Carefully follow...
The United States is increasingly outsourcing jobs to India
which means that work is done in India rather than in the United
States.
For example, the Indian firm Tata Consultancy Services, which
provides information-technology services, increased its work force
by 70,000 workers in 2010 and expected to add 60,000 more in
2011 ("Outsourcing Firm Hiring 60,000 Workers in India," San
Francisco
Chronicle,
June 16, 2011). As a result of increased outsourcing, wages of
some groups of Indian skilled workers have...
supply curve to shift leftward to SRAS, as shown in the graph at right. The economy is currently in short-run equilibrium at point E, and the reduction in supply is expected to be permanent. LRAS SRAS SRAS 1.) Using the line drawing and/or 3-point curved line drawing tool, show the adjustment to long-run equilibrium in this situation. Properly label your new curve(s). 2.) Using the point drawing tool, identify the new long-run equilibrium point and label the point 'E2 Carefully...
The figure to the right depicts the bond market. Show what will happen to interest rates if prices in the bond market become more volatile. 1. Using the line drawing tool, show the effect of this shock on the bond market. Properly label your line, 2. Using the point drawing tool, indicate the new equilibrium bond price and quantity. Label the point 2. Carefully follow the instructions above, and only draw the required objects. The effect of this shock will...
Until 2012, California, Texas, and Pennsylvania required firms
to collect sales taxes for online sales if the chain had a physical
presence (a "brick" store as opposed to a "click" store) in those
states.
Thus, those states collected taxes on Best Buy's online
sales, because it had stores in each of those states, but they did
not collect taxes from Amazon.com because it did not have physical
locations in those states.
Starting in 2012, Amazon had to pay taxes in...
The following table shows Ellie's utility from consuming slices
of cake and cans of Pepsi.
Suppose Ellie has $12 per week to spend on cake and Pepsi and that
the price of a slice of cake is $2.00.
1.) Use the point drawing tool to plot Ellie's demand for Pepsi
at a price of $2.00. Label this point 'A'.
2.) Use the point drawing tool to plot Ellie's demand for Pepsi
at a price of $4.00. Label this point 'B'....
Refer to the diagram to the right: 1) Use the line drawing tool to draw a demand curve that shifts to the right. Label this line 'De 2) Use the line drawing tool to draw a supply curve that shifts to the right by less than the demand line. Label this line 'S 3) Use the point drawing tool to identify the new point of equilibrium. Label this point 'B' Price Carefully follow the instructions above, and only draw the...
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