Answer:
A. Decrease
B. $200
C. $190
D. $175
Explanation:
The noise from airplanes constitute a negative externality and hence tax was levied on airplane tickets. This is known as pigouvian tax.
Negative externality is when the benefits of economic activities to third parties is less than the costs.
If a tax is levied on a good or service, it makes the good or service more expensive and quantity demanded would fall as a result. So the demand for airplane tickets is expected to fall as a result of the impostion of tax.
The social optimal price of the ticket is the priceof the ticket after the impostion of tax. This is $200
The private market price is the price before the impostion of tax. This is $190
How much the firm receives after paying for tax = social optimal price - tax
$200 - $25 = $175
I hope my answer helps you
Answer: The correct answer is "C. network effects".
Explanation: It is said that a network effect occurs when the value of a good or service depends on the number of people who use it. In general, when there is a network effect, the higher the number of users, the greater the value or utility will have that good or service. Therefore the network effects are acting as an entry barrier.
Answer:
1) If the Fed sells $2 million of government bonds, the economy’s reserves Decrease by $2 million, and the money supply will Decrease by $16 million.
2) The money multiplier will remain unchanged. True
3) As a result, the overall change in the money supply will remain unchanged. True
Explanation:
1.) We have the reserve requirement for checking deposits as 12.5% with banks not holding any excess reserves.
To calculate Money Multiplier:
Money Multiplier = 
= 
= 8
If the Fed sells $2 million of bonds, reserves will decrease by $2 million and the money supply will decrease by 8 x $2 million = $16 million.
2) and 3) Now the Fed lowers the reserve requirement to 10 percent, but banks choose to hold another 2.5 percent of deposits as excess reserves.
To calculate Money Multiplier:
Money Multiplier = = 
= 8
Money multiplier is 8 same as in 1) Therefore the statements: "The money multiplier will remain unchanged" and "As a result, the overall change in the money supply will remain unchanged" are both True.
Answer:
c. John's capital account for $41,400
Explanation:
Based on this information it can be said that in this scenario the journal entry to record the admission of John as a new partner would include a credit to John's capital account for $41,400. This is mainly because even though Bobbi sold his interest for $63,900 his actual interest capital in the partnership was that of $41,400 .... meaning that John now holds a partnership capital of $41,400 and the Bobbi profited $22,500
Answer:
Increase, Decrease
Explanation:
A decrease in the supply results in many buyers competing for very few goods. If the demand is constant, the quantity supplied and price have an indirect relationship. A decrease in the volume of supplied results in an increase in price. Many buyers will be competing for a few products causing the equilibrium price to increase.
A decrease in supply will cause the quantity available for buyers to buy to decline. Consequently, the volume purchased will be fewer. Equilibrium quantity will, therefore, decrease.
