Suppose that people expect that the price of computers will rise next month. At the same time
Fantastic news! We've Found the answer you've been seeking!
Question:
Suppose that people expect that the price of computers will rise next month. At the same time governments impose a $3.00 tax on the computer industry. What happens to equilibrium price and quantity? Illustrate using a graph.
Suppose that the government impose a subsidy of $1 on the production of Nikes (Jordans). At the same time Nikes and Reeboks are substitutes and the price of Reeboks decrease. What happens to equilibrium price and quantity? Illustrate using a graph.Assume that producers expect the price of shampoo to be higher in April. At the same time a new study just released states that washing your hair everyday increases the probability of baldness. What happens to equilibrium price and quantity? Illustrate using a graph.
Related Book For
Macroeconomics Principles And Policy
ISBN: 9780324586213
11th Edition
Authors: William J. Baumol, Alan S. Blinder
Posted Date: