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
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.
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Macroeconomics Principles And Policy
Authors: William J. Baumol, Alan S. Blinder
11th Edition
0324586213, 978-0324586213
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