Suppose that the market for good X is free and competitive, where the equilibrium price and quantity, are $30 per ton and 10 million tons per year, respectively. The producers of good X complain to the government that the current market price is too low to provide them with sufficient income, and they want the government to set a price floor of $40 per ton and to purchase all resulting surplus in order to guarantee that the price support is maintained. Some government advisors are concerned by the fact that the elasticities of demand and supply for goodXare unknown and therefore, this price support policy could be too costly for the government, and for consumers of good X in terms of the loss of consumer surplus. The question: Could the impact of the price floor on the consumers of good X (in terms of the loss of consumer surplus) be more than $100 million, or less than $100 million, or equal to $100 million? What conditions would your answer depend on? (Hint: Make some reference to elasticity.) Explain your reasoning carefully, and illustrate with an appropriate diagram(s) using demand and supply curves.( write words more than 300 words.)

Suppose that market for good X is free and competitive, where the equilibrium price and quantity are $30 per tops and 10 million tons per year respectively. The producers of good X complain to the government that the current market price is too low to provide them with sufficient income, and they want the government to set a price floor of $40 per ton and to purchase all resulting surplus in order to guarantee that the price support is maintained. Some government advisors are concerned by the fact that elasticities of demand and supply for good X are unknown and therefore, this price support policy could be too costly for the government. Question: Under what conditions could this price regulation cost the government 1, more than $100 million per year 2, less than $100 million per year 3, equal to $100 million per year (Hint: Make some reference to elasticity.) Explain your reasoning carefully, and illustrate with appropriate diagram using demand and supply curves. ( write words more than 300 words.)

Penny Lawrence is a research scientist in Miama, Florida. Her husband Lary Lawrence stays home to take care of their two young children, George (age 11) and Allie (age 9). Penny's total wages for 2019 were $73,023 from which $6,418 of federal income tax was withheld.  Florida does not have a state income tax.

They had $213 in interest income. Penny received dividends from Exxon in the amount of $434 and Lary received dividends from First National Bank in the amount of $324.   The additionally received interest on a State of Florida bond in the amount of $42.  They gave $4,418 to their church, $2000 to the Committee to Elect Sam Spade, and gave a bag of clothing valued at $471 to the Salvation Army (they have a receipt).   The Kenzie’s paid taxes on their house in the amount of $3,210.

Penny attended the University of Florida and is still paying off her student loans.  She paid $4800 in student loans this year, and $196 of that amount was interest.

The Lawrence’s paid $6,281 in medical insurance premiums (after tax dollars).  They also paid $523 in doctor’s visits and $481 for new glasses. Penny Lawrence is a big believer in vitamins and spent $522 at the GNC this year on supplements.

The Lawrence’s mortgage payment is $1,546 per month.  80% of their total mortgage payment is interest. Penny receives child support from her ex-husband in the amount of $300 per month. They were divorced in 2014.

Lary likes to play the nickel slots.  He went to Las Vegas for a trip with the guys.  He won $2,291 on the slot machines.  He didn’t tell Penny, however, that it cost him in nickels $1,143 to win that money.

Prepare the Penny's 2019 Form 1040 tax return and any necessary schedules.  Calculate their 2019 federal income tax and determine if they owe additional taxes or are receiving a refund.

Excess Supply from a Minimum Milk Price. In the equilibrium in the powdered milk market, the quantity is 100 units and the price is $9.00 per unit. The price elasticity of demand is 0.80 and the price elasticity of supply is 2.50. Suppose the government imposes a minimum price of $9.90. Draw a graph to show the market effects of the minimum price.

In the short run, the quantity of output that firms supply can deviate from the natural level of output if the actual price level in the economy deviates from the expected price level. Several theories explain how this might happen.

For example, the sticky-price theory asserts that the output prices of some goods and services adjust slowly to changes in the price level. Suppose firms announce the prices for their products in advance, based on an expected price level of 100 for the coming year. Many of the firms sell their goods through catalogs and face high costs of reprinting if they change prices. The actual price level turns out to be 90. Faced with high menu costs, the firms that rely on catalog sales choose not to adjust their prices. Sales from catalogs will ? , and firms that rely on catalogs will respond by ? the quantity of output they supply. If enough firms face high costs of adjusting prices, the unexpected decrease in the price level causes the quantity of output supplied to ? the natural level of output in the short run.

Suppose the economy's short-run aggregate supply (AS) curve is given by the following equation:

The Greek letter αα represents a number that determines how much output responds to unexpected changes in the price level. In this case, assume that α=$2 billionα=$2 billion. That is, when the actual price level exceeds the expected price level by 1, the quantity of output supplied will exceed the natural level of output by $2 billion.

Suppose the natural level of output is $60 billion of real GDP and that people expect a price level of 100.

On the following graph, use the purple line (diamond symbol) to plot this economy's long-run aggregate supply (LRAS) curve. Then use the orange line segments (square symbol) to plot the economy's short-run aggregate supply (AS) curve at each of the following price levels  90, 95, 100, 105,

Y- PRICE LEVEL: 125 120 115 110 105 100 95 90 85 80 75

X- OUTPUT (Billions of dollars) : 10 20 30 40 50 60 70 80 90 100

The short-run quantity of output supplied by firms will fall below the natural level of output when the actual price level ? the price level that people expected.

Suppose a production function is given by  F ( K , L ) = K^(1/2) L^(1/2), the price of capital “r” is $16, and the price of labor “w” is $16.
a. (5) What combination of labor and capital minimizes the cost of producing 100 units of output in the long run?
b. (5) When r falls to $1, what is the minimum cost of producing 100 pounds of pretzels in the short run? In the long run?
c. (5) When r falls to $1, will the cost of producing 100 units of output increase or decrease in the long-run? Explain.

Suppose a production function is given by  F ( K , L ) = K 1 2 L 1 2, the price of capital “r” is $16, and the price of labor “w” is $16.
a. (5) What combination of labor and capital minimizes the cost of producing 100 units of output in the long run?
b. (5) When r falls to $1, what is the minimum cost of producing 100 pounds of pretzels in the short run? In the long run?
c. (5) When r falls to $1, will the cost of producing 100 units of output increase or decrease in the long-run? Explain.

Case 2: Anik Anik is a 29-year-old Javanese (Indonesia) woman who was born in a rural area but has lived in the city of Yogyakarta for the past four years. She has been married 1% years, but is very unhappy in her marriage, feeling her husband is lacking in openness and compassion. Anik has been unable to care for her 8-month-old daughter for the past several months, so the daughter was living with Anik's aunt in Jakarta. When her illness began, Anik first became withdrawn and didn't sleep or eat. She developed hallucinations of accusatory voices criticizing her husband, his family, and their landlady. Anik also suffered from jealous delusions that her husband was having an affair. She was taken to the hospital by her brother, where her symptoms included mondar-mandir ("wandering without purpose"), ngamuk ("being irritable"). Being easily offended and suspicious, talking to herself, crying, insomnia, malmun ("daydreaming") and quickly changing emotions. Her sister-in-law reported that she had been chronically fearful and irritable for some time and would frequently slam doors and yell. In Javanese culture, the control of emotions in social situations is of great importance, so Anik's outbursts were seen as clear signs of some sort of pathology. Anik had several explanations for her behavior. First and foremost, she believed that she was in a bad marriage, and this stress was a contributing factor. Shortly before her symptoms began, her landlady said something harsh to her, and Anik believed that her startle reaction to this (goncangan) led to sajit hati, literally "liver sick­ ness:' In addition, Anik's mother had a brief period during Anik's childhood when she "went crazy", becoming loud and violent, and Anik believes she may have inherited this tendency from her mother. Anik initially sought to overcome her symptoms by increasing the frequency with which she repeated Muslim prayers and asking to be taken to a Muslim boarding house. Once she was taken to the hospital, she agreed to take antipsychotic medications, which helped her symptoms somewhat. She was discharged from the hospital after a short time, but was rehospitalized multiple times over the next year. Questions: For each case please answer the following questions: 1. What condition or conditions (there may be more than one possibility) are being described in this case? 3. What brain area or area(s) may be involved? How should they function normally? What could be causing this dysfunction? 4. How would the treatments recommended affect the brain? How might those effects relate to the symptoms? 5. How can you explain all of the symptoms exhibited by this case? Can you relate each symptom to a specific brain area or neurotransmitter? 6. What other interventions may be possible, besides those noted here? Please justify your answers by using the concepts from other scientific resources). Total Posts:

Suppose that, in the absence of insurance, the daily demand for visits to a clinic is given by Qd = 200 – 0.5P, where c is the coinsurance rate and P is the price charged by the clinic.

a. Calculate the quantity demanded when P is $100.

b. Calculate daily revenues when P is $100. Now assume that customers pay a coinsurance rate,

c. You will need to modify the demand function to account for the coinsurance. See page 105 of the Bernell text for some tips. c. Calculate the quantity demanded when P is $100 and the coinsurance rate is 0.4.

d. Calculate the daily revenue for the values given in (c). e. Calculate the quantity demanded when P is $100 and the coinsurance rate is 0.8.

f. Calculate the daily revenue for the values given in

(e). Assume the clinic’s daily capacity is 100 customers.

g. Calculate the price the clinic should set to exactly use its entire capacity when there is no insurance (i.e., the coinsurance rate is 1).

h. Calculate the price the clinic should set to exactly use its entire capacity when there is a coinsurance rate of 0.8