Background Information: Alcohol related harm (including health effects on the drinkers, and hospital admissions - largely of women due to domestic violence) has long been a problem in the Northern Territory (NT). Previous attempts to address this issue in the NT have included bans on sales of wine and fortified wine in casks and large bottles in 2006, and removing the cheapest forms of alcohol (bulk wine and bulk fortified wine) from the market. A study into the effectiveness of these policies estimated they increased the wholesale price of a standard drink from $0.80 to $1.10. While some people turned to other types of alcohol such as more expensive full strength beer, the study claimed that the decline in cheap alcohol more than offset this, resulting in an overall reduction in alcohol consumption from around 24 standard drinks for every person aged 15 years and over per week, to around 20 standard drinks per week. Alcohol related harm decreased significantly as a result of this reduction in alcohol consumption, and the study concluded: “while the causes of family and community violence are complex, bans on cheap alcohol are especially effective in reducing the number of Aboriginal

Questions:

A) Use the numbers given above to calculate the price elasticity of demand for a standard drink in the Northern Territory for the original price increase, showing your workings. Interpret your answer; does your answer indicate that demand for a standard drink in the NT is elastic or inelastic? Explain what this means with respect to the responsiveness of drinkers to price increases, and suggest a reason (or reasons) for this level of elasticity. In October 2018 the Northern Territory government decided to put a price floor of $1.30 on a standard drink.

B) Will a price floor have a greater or smaller effect on the quantity of standard drinks consumed in the NT compared to if demand was more elastic than you found in answer to part (A)? Explain your answer.

C) Suggest an alternative policy that could result in a similar reduction of alcohol consumption. Explain your answer.

1. Explain why trade leads to mutually beneficial gain

2.Think about an example from your own life, someone you know, sports, entertainment, or business that demonstrates how comparative advantage is used in the real world.

Which of the following will cause a rightward shift (increase) of the supply curve for OLED smart TVs?

Answers:

A. A decrease in the labor costs associated with the production of OLED smart TVs

B. An improvement in the technology used to produce OLED smart TVs

C. A decrease in the price of regular smart TVs

D. All of the above

What is the latest trend of the development of multinational cooperations? (at least 1500 words, charts and data are required, and case study is preferred).

Technology is taking much of the fun out of finding a place to park the car. Now, in cities from New York to Seattle, the door is open to a host of wireless technologies seeking to improve the parking meter even further. Chicago and Sacramento, CA, among others are equipping enforcement vehicles with infrared cameras capable of scanning license plates even at 30 miles an hour. Using a global positioning system, the cameras can tell which individual cars have parked too long in a two-hour parking zone. At a cost of $75,000 a camera, the system is an expensive upgrade of the old method of chalking tires and then coming back two hours later to see if the car has moved.

Parking czars in municipalities across the country are starting to realize parking meters' original goals: generating revenue and creating a continuous turnover of parking spaces on city streets. Clearly, their main questions are "Would there be enough new revenue from installing the expensive parking monitoring devices?" and "How many devices should be installed to maximize the revenue streams?" From the device manufacturing's point of view, the question is "Would there be enough demand for their products to justify the investment required in new facilities and marketing?" If the manufacturing decides to go ahead and market the products, but the actual demand is far less than its forecast or the adoption of the technology is too low, what would be the potential financial risk?

Workers who immigrate to new countries, how does this affect the predictions of the Heckscher-Ohlin Model? How should this affect our thoughts about trade policy and immigration policy?

13. In detail.

a. Wealthy members of the US society are taxed at the highest rates while a large percentage of non-wealthy Americans pay the lowest taxes and in many cases no taxes at all (see the last portion of the lecture). Explain why or why not you feel this is or is not fair.

b. Explain in detail how you would structure the tax system on wage earners.

Marketing Scenario

You are the director of marketing for a company based out of Chicago IL and your firm sells custom-built athletic braces for college and pro athletes. The company wants to expand your customer base into senior citizens and begins to design and sell a new knee brace that will help older folks.

1. The new brace goes on sale JULY 1st 2020. Your company advertises on social media, their website, and senior citizens can buy the brace at local retailers like Target or Wal-Mart. The prices range from $19.99 to $34.99

2. Your company's key marketing message during the product launch is this: "Golden Brace is made for seniors who need additional support to stay active! We care about you!"

3. On September 1st 2020, your social media platform is flooded with complaints that the brace is starting to shred or fall apart after repeated use. Thankfully no person has been injured but a few customers are upset and they are sounding off.

4. Your boss tells you that they were aware of a possible manufacturing defect but decided to let it go. In addition, you are told that the marketing for the brace never stated that it should be worn all the time...only when senior citizens were choosing to be active.

5. Your boss finally tells you that it is YOUR JOB to find a solution. If not, you may be replaced.

So....

1. What is your DETAILED solution to the problem?

2. What is ethically wrong in this scenario?

To eliminate deficit spending and reduce public debt, some politicians and economists have proposed a Constitutional amendment requiring a balanced federal budget.

In your initial post to this discussion, respond to each of the following prompts based on what you’ve learned in this module about deficit and debt.

What present and future benefits might result from an amendment requiring that each year's budget be balanced?

What limitations or costs might result from such an amendment? Describe alternative legislation that might eliminate chronic deficits but have more desirable effects on the economy.

1. There are multiple derivations of the Rational Rule. Define the Rational Rule broadly.
   1. Define the Rational Rule for Buyers
   2. Define the Rational Rule for Sellers
   3. Define the Rational Rule for Workers
   4. Define the Rational Rule for Society
   5. Define the Rational Rule for Employers

Department of Homeland Security v. Regents of the University of California summarized in 2 paragraphs

Suppose the demand equation for bicycles is P = 1900 – 20QD. Calculate the elasticity of demand between the quantity demanded of 40 and 50

TotsPoses, Inc., a profit-maximizing business, is the only photography business in town that specializes in portraits of small children. George, who owns and runs TotsPoses, expects to encounter an average of eight customers per day, each with a reservation price shown in the following table. Assume George has no fixed costs, and his cost of producing each portrait is $25.

a. Suppose George is permitted to charge two prices. He knows that customers with a reservation price above $30 never bother with coupons, whereas those with a reservation price of $30 or less always use them. At what level should George set the list price of a portrait? At what level should he set the discount price? How many photo portraits will he sell at each price?

List price of a portrait: $__   

Number of portraits to be sold at the list price: __portraits

Discount price of a portrait: $__   

Number of portraits to be sold at the discounted price: __portraits

b. In this case, what is George’s economic profit and how much consumer surplus is generated each day?

Economic profit: $__   

Consumer surplus: $__

TotsPoses, Inc., a profit-maximizing business, is the only photography business in town that specializes in portraits of small children. George, who owns and runs TotsPoses, expects to encounter an average of eight customers per day, each with a reservation price shown in the following table. Assume George has no fixed costs, and his cost of producing each portrait is $35.

a. Complete the following table.

Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Enter your responses as whole numbers.

How much should George charge if he must charge a single price to all customers? $__

At this price, how many portraits will George produce each day? __ portraits

What will be his economic profit? $__ per day

b. How much consumer surplus is generated each day at this price? $__

c. What is the socially efficient number of portraits? __ portraits

d. George is very experienced in the business and knows the reservation price of each of his customers. If he is allowed to charge any price he likes to any consumer, how many portraits will he produce each day? __ portraits.

What will his economic profit be? $__ per day

e. In this case, how much consumer surplus is generated each day? $__

Assume you have to find the optimal commodity tax rate for all the goods in an economy featuring only 17 goods. How many first order conditions would you have to find in your DWL minimisation problem?