Trump says he will block coronavirus aid for U S Postal Service if it doesn't hike prices immediately The president said the postal agency should quadruple its package delivery prices, otherwise he would block congressionally approved funding The full article is here https www washingtonpost com us policy 2020 04 24 trump postal service loan treasury Read the full article and answer the questions below Draw a diagram representing the market for mail (a diagram for first class mail (FCM) and a market for packages) Identify, what has been happening to the demand for FCM and packages in the last 10 years (see data here https facts usps com table facts for reference, I've included a data set for FCM in the canvas called Mail Data) You are an economist consulting for the White House What information would you need to have in order to build out a model to explain the impact of a quadruple of pricing of packages on package volume Explain You are not building the model, but telling me the variables that you would need to build the model Explain your variable choice and how they relate to the underlying ideas of demand tastes, expectations, population, income, prices of related products) Use the Mail Data and construct a simple (not nave, but very simple) demand for FC mail What is the elasticity of FCM How would you advice the US Postal Service or the White House if they were considering increasing the price of first class mail Explain

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Posted on Jul 04, 2024

Trump says he will block coronavirus aid for U.S. Postal Service if it doesn't hike prices immediately

The president said the postal agency should quadruple its package delivery prices, otherwise he would block congressionally approved funding

The full article is here: https://www.washingtonpost.com/us-policy/2020/04/24/trump-postal-service-loan-treasury/

Read the full article and answer the questions below:

Draw a diagram representing the market for mail (a diagram for first class mail (FCM) and a market for packages). Identify, what has been happening to the demand for FCM and packages in the last 10 years (see data here: https://facts.usps.com/table-facts/ for reference, I've included a data-set for FCM in the canvas called Mail Data).
You are an economist consulting for the White House. What information would you need to have in order to build out a model to explain the impact of a quadruple of pricing of packages on package volume? Explain. [You are not building the model, but telling me the variables that you would need to build the model. Explain your variable choice and how they relate to the underlying ideas of demand ~ tastes, expectations, population, income, prices of related products)
Use the Mail Data and construct a simple (not nave, but very simple) demand for FC mail. What is the elasticity of FCM? How would you advice the US Postal Service or the White House if they were considering increasing the price of first class mail? Explain.