Q3(using graph(s) and words )Use the economic theories to determine whether the statement in each of the following question is True, False or Uncertain. Please explain using both words and graph(s) and make it concise. Your answer should be around ¾ to 1 page for the question.

Consider a monopoly provider of water tanks. The monopolist could practice third degree
price discrimination by setting a price of $5000 for a 5000-litre water tank to residents in
rural areas, but charge only $4000 for the same 5000-litre water tank to urban residents
because the elasticity of demand is more inelastic in urban areas.

The use of petroleum products is thought to be one of the lead causes of pollution and climate change. One main use of petroleum products is as fuel for cars and other forms of transport. Discuss the pros and cons of taxing petrol to reduce pollution.

Students believe that if everyone in the course studies for the final exam, then the average mark everyone can expect is 75. However, if no one studies, everyone does so poorly that grades are scaled and the average mark of 60 is achieved. If one person studies while everyone else doesn’t, the one who studies achieves 80, the rest achieve 45 (and no scaling takes place). This game is a one-off simultaneous game with the two players to be ‘You’ and ‘Everyone else’. If everyone colludes, then the Nash equilibrium is for no one to study.

Q1(using graph(s) and words )Use the economic theories to determine whether the statement in each of the following question is True, False or Uncertain. Please explain using both words and graph(s) and make it concise. Your answer should be around ¾ to 1 page for the question.

Consider a dam which provides drinking water for a local community and which allows free access to all. As a public good the only way to manage this resource is through government regulation so that overuse does not occur.

Assuming that most modern cars share very similar characteristics, what do customers really buy – a product or an experience? In your opinion, what drives car-buying decision? Explain.

Using ONLY a single market model, compare and contrast the long run equilibrium outcomes of perfectly competitive markets and monopoly markets. Make sure to clearly identify the deadweight loss that occurs along with labeling the prices and quantities charged by each market structure. (10 pts)

Write about North Shore Housing Center or any other housing centers. Give at least 2 main points and explain. also include conclusion.

In 200 words describe the slave economy of the South, and the ways in which the Northern economy benefited from slavery. Provide examples of ways in which slaves sought to resist enslavement.

How would you improve any or all of these taxes and fees? Please explain how each one of the five major taxes applies to each one of the five major types of income: that is, how is each type of income taxed

Consider a market with demand and supply functions:

Supply function: ? = 40? − 40

Demand function: ? = 200 − 20�

a. Find deadweight loss of the price floor. [Hint: Deadweight loss is a region lost because of no trade.]

Welfare effects of a tax

Now, the government repeals the price floor and imposes a sales tax of $3 per good on buyers-side.

b. Draw a new demand curve with old demand and supply curves. Find the new equilibrium quantity when the tax is imposed. [Hint: The demand curve shifts down by $3 due to the tax. Use the new demand function: ? = 140 − 20?.]

c. When the tax is imposed, find the price buyers pay and the price sellers receive.

d. Of $3 tax, how much buyers and sellers pay, respectively?

e. Find and calculate the new consumer surplus, producer surplus, government revenue, total surplus and deadweight loss under the tax.

How is social security currently funded?

What are the pros and cons of replacing social security with private funds? Do you support privatization or not support it? Provide arguments to support your side.

What changes have been made to the social security system from inception to date? Are those changes adequate?