Questions from Microeconomics

Q: According to a news story, Pennsylvania’s liquor tax is “paid

According to a news story, Pennsylvania’s liquor tax is “paid by the seller—the restaurant or bar owner—when the seller buys liquor from state-run wine and spirit stores.” Briefly explain the effect o...

Q: Put each of the following goods or services into one of the

Put each of the following goods or services into one of the categories shown in Figure 5.7 on page 166. That is, categorize them as private goods, public goods, quasi-public goods, or common resources...

Q: Consider firms selling three goods: One firm sells a good with

Consider firms selling three goods: One firm sells a good with an income elasticity of demand less than zero, one firm sells a good with an income elasticity of demand greater than zero but less than...

Q: What do economists mean by shortage? By surplus?

What do economists mean by shortage? By surplus?

Q: Consider the natural monopoly shown in Figure 15.7 on page

Consider the natural monopoly shown in Figure 15.7 on page 520. Assume that the government regulatory agency sets the regulated price, PR, at the level of average total cost at which the demand curve...

Q: The text refers to health care as a normal good. Briefly

The text refers to health care as a normal good. Briefly explain why. In the future, is it possible that health care in the United States could become an inferior good? Briefly explain how it would be...

Q: The following graph shows the effect on consumer surplus, producer surplus

The following graph shows the effect on consumer surplus, producer surplus, government tariff revenue, and economic surplus of a tariff of $1 per unit on imports of plastic combs into the United State...

Q: Rob Neyer is a baseball writer for sbnation.com. He

Rob Neyer is a baseball writer for sbnation.com. He has described attending a Red Sox game at Fenway Park in Boston and having a seat in the sun on a hot, humid day: “Granted, I could have moved under...

Q: What is market failure? When is market failure likely to arise

What is market failure? When is market failure likely to arise?

Q: The widespread realization in the late nineteenth century that bacteria causes diseases

The widespread realization in the late nineteenth century that bacteria causes diseases helped lead to a public health movement. This movement eventually brought sewers, clean drinking water, and garb...