Explore BrainMass

Explore BrainMass

    Basic Economic Concepts and Principles

    BrainMass Solutions Available for Instant Download

    Consumption of two goods and related taxes

    The following figure shows that a tax on clothing can reduce the price of food. Suppose that after the tax on clothing consumption is imposed, another tax is levied on the consumption of food. For example, the consumption of both commodities would be subject to a tax of five percent. Describe the conclusions of your analysis ass

    Profit maximization

    The owner of the car wash believes that the relationship between the number of cars washed and labor input is Q = -0.8 + 4.5L - 0.3L2, where Q is the number of cars washed per hour, and L is the number of people employed per hour. The firm receives $5 for each car washed, and the hourly wage rate for each person employed is $4.5