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# Note for ECON 011 with Professor Trost at GW

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KARMA
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This 1 page Class Notes was uploaded by an elite notetaker on Saturday February 7, 2015. The Class Notes belongs to a course at George Washington University taught by a professor in Fall. Since its upload, it has received 18 views.

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Date Created: 02/07/15
1 Figure 11 shows the demand for donuts in centsdonut Figure 11 Sugarville a town with 10000 residents 80 S The supply of donuts is also shown Based 70 On this diagram you anticipate a market 60 price of centsdonut 50 Ifa price ceiling is introduced and set at 40 twenty cents per donut you anticipate that 30 Sugarville residents will eat atotal of 20 donuts per day 10 D Finally assume that the government levies 0 a speci c taX of twenty cents per donut 1000 2000 3000 4000 5000 6000 7000 You anticipate that the price per donut donuts per day paid by residents of Sugarville will be and the quantity sold will be show your work on the diagram 2 Consider Jane s demand curve for beef which is a normal good In each case indicate if you would expect the demand curve to shift up shift down or remain the unchanged 2a The price of chicken falls 2b The price of beef increases 2c Jane39s income increases 2d A price ceiling is put on beef 3 Ifthe elasticity of sweater supply is 12 and price rises 10 you predict that quantity will change by and revenue will change by show work below Report your answer as XX where signi es an increase in the value and 7 a decrease

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