An industry's inverse demand was PD = 20 - 0.1Q and its inverse supply was PS = 4 + 0.1Q.

a. Calculate the consumer surplus, producer surplus, government revenue and deadweight loss for taxes of $4, $8, $12 and $16 per unit sold.

b. Graph government revenue and deadweight loss as functions of these tax rates.

c. What tax maximizes government revenue?

Suppose both Smith and Jones utility functions of U(X,Y) = X1/2Y1/2. Smith is endowed with (X, Y) = (9,25) and Jones is endowed with (X, Y) = (25,9).

a. Draw an Edgeworth box with indifference curves through this endowment.

b. At what combinations of X and Y are both better off (i.e., are Pareto Improving)?

c. At what combinations of X and Y are there no more gains from trade (i.e., are Pareto Efficient)?

d. If they agreed on a price of one X for one Y, would they be better off?

Current and future role of business in society

Suppose price-taking firms have cost functions given by C(q) = 90 + 5q + 0.025q2.

a. What are the equations of marginal costs and average costs?

b. How much would the firm produce at prices of $9, $10, $11, and $12?

c. How much profit would the firm earn at prices of $9, $10, $11, and $12?

d. Graph the MC, AC. Indicate the profits at a price of $9 per unit.

e. What price would be charged in the perfect competitive equilibrium?

1. Suppose a firm’s multiproduct cost function is C(Q₁, Q₂) = 65 - 0.5Q₁Q₂ + 0.3Q₁² + 0.4Q₂², and management wishes to produce 12 units of each product (Q₁ = Q₂ = 12 units).

1. Determine the marginal cost of each product at the planned levels of production. Clearly show your steps and calculations.

2. Determine whether the multiproduct cost function exhibits economies of scope or not at the planned levels of production. Clearly show your steps and calculations.

3. Determine whether the multiproduct cost function exhibits cost complementarity or not at the planned levels of production. Clearly show your steps and calculations.

4. Discuss the economic implications of the outcomes in (b) and (c) above.

The following table provides the project annual budget, total number of projects, and total number of people working on the projects for City of Killingcovid annually:

For A to F, use the data between Yr 2006 and Yr 2015 to calculate the following:

A. The mean of the Number of People Working on the Project.
B. The median of the Budget.
C. The range of Budget.
D. The variance (3 significant figures) of Number of Projects.
E. The standard deviation (nearest integer) of Number of People Working on the Project.
F. The 20% trimmed mean of Number of Projects.

G. Draw a dot plot comparing the Number of People Working on the Project from Yr 1997 to Yr 2006 and those from Yr 2009 to Yr 2018.

H. Using the data for Annual Budget from Yr 2001 to Yr 2017, draw a double stem leaf plot, then calculate the relative frequency.

Depreciation is a tough concept since there may be so many factors associated with it. The IRS changes the tax deductions given for depreciation on a regular basis. On a larger purchase the tax deduction may be significant. How much of a factor do you think depreciation should be on the decision to move forward with a project? For example, if the tax benefit is greater in the following year, should management hold off on the purchase? Do you feel that managers understand this concept well enough to include it in their decision making process?

(a) What is the compensating variation? What is the equivalent variation? What is the di⁄erence between them?

(b) You consume two goods, good x and good y. These goods sell at prices px = 1 and py = 1, respectively. Your preferences are represented by the following utility function: U(x,y) = x+ln(y). You have an income of m = 100.

How many units of x and y will you buy and what will is your utility? If px increases from $1 to $2; figure out the compensating variation (CV) associated with price change.

(c) If instead your utility is U(x,y) = ln(x) + y, figure out the compensating variation (CV) as px increases from $1 to $2.

(d) Are the compensating variations the same for both of the above utility functions? Explain your answer rigorously.

The answer should be not over one single page for each questions and I need a diagram for number two. please draw a diagram as well.

simplify is okay as long as it's correct

please help me.

1 . If the bank of Canada sells some of its holdings of bonds to the chartered banks, the bank will use some of their reserves but in doing so it will add to the money supply <Is this correct or False?) and Explain your answer.

2.Illustrate and Explain how monetary policy can be destabilizing and how a monetary rule could work to reduce the amplitude of the business cycle

Part 1

Between 2015 and 2016, the country of West Fredonia experienced a growth rate of -2.6%. If nominal GDP had increased by 1.3% and the population growth was recorded as 0.4%, then calculate the annual inflation rate in West Fredonia. Give your answer to one decimal._____________    %

Part 2

Using the information in the table above, calculate economic growth for 2015. Give your answer to two decimal places.
__________    %

4. How to use the three monetary policies and the three fiscal policies to reduce BOP deficit? Please explain how each policy works, i.e., how economic entities react to the policy changes so that the deficit will be reduced.

1. Suppose the exchange rate between US$ and Euro, US$ and Japanese Yen are:

    1 US$ = 2 Euro; 1 US$ = 100 Yen.

    Suppose the interest rates published by central banks in the U.S., Euro zone, and Japan are 2%, 3%, and 4%, respectively;

    And, suppose the inflation rates in the U.S., Eurozone, and Japan are 1%, 2%, and 1%,

    respectively. Therefore, (calculation formula is optional)

Q1.1: How much Yen can 1 Euro exchange for?

Answer1.1:

Q1.2: What is the real interest rate for the US, Euro zone, and Japan, respectively?

Answer1.2:

            US=

            Euro zone=

            Japan=

Q1.3: (True/False) A person with 2 Euro can convert the money into Yen and save it in Japanese banks for one year, and get 103 Yen back.

Answer1.3:

Assume a two-country, two-good, two-input model. Let the countries in the model be the United States and the Rest of the World and the goods be steel and wheat. The two factors of production are capital and land. Further, the United States is capital-abundant and steel production is capital-intensive. Suppose, in the absence of trade, the United States operates at a point on its production possibility curve where it produces and consumes 20 units of wheat and 20 units of steel. Once it engages in free trade, the international price of one unit of steel is two units of wheat. In response to the opening of trade, the United States moves along its production-possibility curve to a new point where it produces 30 units of steel and 10 units of wheat. Is the United States better off following the opening of trade? Illustrate with a diagram and provide a clear explanation for your answer

Comment on the President's 2020 Budget (submitted to Congress on March 11) to look at specific proposals (no endorsement!) on the national debt and also what are your thoughts on US national debt.