What are the factors of supply

Let C(q) 20 + 4q + 2q2 and demand P(Q) = 212 – 6Q a. Derive the standard monopoly solution b. Derive monopoly profits as a function of the two kinds of taxes: solve for q as a function of the unit tax t and ad valorem tax a. Let t = 6.05 and let a = 0.1. Both taxes generate Q = 12.6 and a resulting consumer price of p = 136.4. Calculate i. Deadweight loss ii. Consumer surplus Producer surplus under the unit taxt Tax revenues under the unit tax t Producer surplus under the ad valorem tax a and compare to undert vi. Tax revenues under the ad valorem tax a and compare to under t

Written Discussion Not everyone chooses to be employed. As the textbook shows, there are a multitude of reasons why people choose (or do not choose) to be unemployed.

Pick one type of worker (or a person you know) who chooses to be unemployed or under-employed and discuss why.

Alternately, you could pick a worker-type who traditionally is not employed and explain why they might choose to work.

Remember to talk about economic theory about unemployment rates (what is U-6?) , supply and demand and what the impact is of those individual employment choices..

Question 2 of 4

Use decimals if needed, not fractions. Do not round at all (without rounding, truncate final answer after three decimal places if needed).

Suppose the demand for union representation is given by R^D=240-4p and the supply of union representation is L^S=2p.

A. Graph the supply and demand for union representation. If union membership is free, the maximum number of workers who would want a union is _______ . If union fees are above $ _______ , zero workers would want to join. In equilibrium, _______ workers will choose to be represented by a union and the fee for being represented by a union will be $ _______ per member.

B. Suppose the government introduces right-to work laws such that workers may receive the benefits of union representation without paying the fees. Some workers who formerly had some willingness to pay for union representation now prefer to be "free riders" on the union services paid by others, and are no longer willing to pay so the demand curve shifts as the aggregate willingness to pay of workers decreases. Suppose the new demand curve is given by L^D=180-4p. Draw this change on your graph. We can interpret this as meaning _________ workers have withdrawn their demand for union representation. As a result, union membership costs $ _______ per worker and _________ workers will choose to be union members.

C. The size of the union ________ (increases/decreases/stays the same) as a result of right-to work laws. The union's total revenue from membership ________ (increases/decreases/stays the same) by $ ________ after the right-to-work laws are introduced.

What exactly is the backbone of an SMS, and why is it so important to the development of a fully functioning SMS? What are the other components? Are they as important as the backbone components of a fully functioning SMS?

In the Great Depression, why did Keynes think about the relative reliability and effectiveness of Fiscal and Monetary policy?

Why do negative externalities, monopoly, and asymmetric information result in bad economic outcomes? What can we do to fix these?

Question 1

Health insurance markets suffer from a large asymmetry of information that leads to adverse selection in the marketplace.

Describe the asymmetric information in the health insurance market. Who is harmed by it?

7. Your government is considering an import tax on a consumer good (imported). Your team is assisting the government in evaluating the welfare impact of the tax. You are the head of the team, and your task is to explain to your team members how the small-country or non-small-country assumptions would influence the result.

9. You are the head of a research team that is assisting your government in evaluating the impact of a global pandemic on the economy. Your task is to explain each step of how to do this job to your team members.

Adapted from “Waiting lists continue to grow at a rate that far outstrips organ supply, and many people die waiting for a kidney or liver”. All countries, including Australia, have far more people on organ waiting lists than available donors. At the beginning of 2015 in Australia over 3000 people were waiting for organ transplants, and by the end of April, only over 150 people had donated organs, allowing 350 people to receive transplants (one donor usually provides several organs). Waiting lists continue to grow at a rate that far outstrips organ supply, and many people die waiting for a kidney or liver. Commentators, health economists and policy makers around the world have made a variety of proposals about how to solve organ shortages. Some health economists argue the de-regulated market (ie allow the free market) for transplant organs is the best way to improve supply. Currently in Australia and most part of the world, organs are treated as 'gifts'. Organs must be donated without payment (ie Ps = $0 for all donations), and distributed according to clinical need rather than ability to pay. This gift system helps to protect both donors and recipients from coercion, and distributes organs fairly.

(Adapted from “Waiting lists continue to grow at a rate that far outstrips organ supply, and many people die waiting for a kidney or liver”.)

1) Currently, the donors and their relatives receive no compensation for the organ donations (ie Ps = $0 for all donations), if the government changes its policy and allow human organs to be traded, what would happen to the supply of organ.

2) Is the demand for human organs such as liver, kidney, lungs, eye price elastic or inelastic?

3) Hospital A, a private institution which is specializing in organ transplant requires to raise more funds (I e Total Revenue) to upgrade its equipment, should Hospital A :

a) raise its price; or

b) hold it price or

c) Drop its price.

Use a diagram to demonstrate and explain the case.

4) Do you think that if the government allows a free market system for organ transplant is fair?

10.

A city is experiencing over-exploitation of its grazing areas. The city council is looking for a consultancy organization that can suggest viable solutions. Your research team is bidding for this job, and you are responsible for the methodology section in the bidding document.

Carefully explain what you would include in the methodology section. Your explanation must include the details of the method (or methods) you choose, the data that need to be collected, the assumptions or restrictions you may want to make, and also the strengths and weaknesses of the method(s).

3.

You are the head of a research team. Your team is analyzing the behavior of a group of consumers toward a number of consumption goods. In particular, the team must estimate the elasticity of substitution of the consumers among these goods.

You are now instructing your team members about how to undertake this estimation job. Your task is to explain each step to your team members.