Budgets, Income Elasticity of Demand and Tragedy of Commons

1. Suppose the U.S. government decides trim the budget a wee bit by eliminating a couple of departments (and their corresponding bodies of regulations). Gone are: The Food & Drug Administration (FDA) and the Occupational Safety & Health Administration (OSHA).
Briefly describe consumers' and workers' behavior after these bureaus (and their corresponding regulations) are eliminated.
This is a very general question and there is no one absolutely correct answer. I will be looking for sound economic reasoning above

2. Strictly in economic terms, are children normal or inferior goods? Construct your argument in terms of the income elasticity of demand. Be sure to include brief definitions of normal and inferior goods.

3. Describe the Tragedy of the Commons, provide a contemporary example, and offer a potential solution.

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1. Suppose the U.S. government decides trim the budget a wee bit by eliminating a couple of departments (and their corresponding bodies of regulations). Gone are: The Food & Drug Administration (FDA) and the Occupational Safety & Health Administration (OSHA).
Briefly describe consumers' and workers' behavior after these bureaus (and their corresponding regulations) are eliminated.
This is a very general question and there is no one absolutely correct answers. I will be looking for sound economic reasoning above
If the FDA is removed the net effect on consumers will be that the cost of products covered by the FDA will go up. How? The customer will have to take precautions about the products consumed. In some cases, she may get food and medicine tested privately to ascertain the safety of those goods, and later the consumer will limit her consumption to those products that she has tested or has information about. The overall effect will be that the choice of goods for the consumer will become less since the consumer ...

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This solution gives you a detailed discussion on Microeconomics

"Suppose the demand function is Q=20-4*Price+10*Income, what is the incomeelasticity if Income=400 and Q=20?"
Answer
A. There is not enough information to answer this question
B. 200
C.1000

Quantity Price ElasticityDemanded
100 $ 5
80 $10
60 $15
40 $20
20 $25
10 $30
1. Determine the price elasticity of demand at each quantity demanded using the formula % chg in QD divided by % chg in price.
2. Redo #1 using price changes of $

A. Calculate the cross-price elasticity of demand coefficient of a firm's product X, given that a 5% increase in the price of its close substitute, product Y, causes the quantity demand of product X to increase by 10%.
B.Calculate the income-elasticity of demand coefficient for a product for which a 4% increase in consumers

The demand for haddock has been estimated as:
log Q = a + b log P + c log I = d log Pm
where Q = quantity of haddock sold in New England
P = price per pound of haddock
I = a measure of personal income in the New England region
Pm = an index of the price of meat and poultry
I

Question: Suppose that the price elasticity of demand for good X is -2, its incomeelasticity is 3, its advertising elasticity is 4, and the cross price elasticity of demand between it and good Y is -6. Determine how much consumption changes if:
a) The price of good Y increases by 10%
b) Advertising decreases by 2%
c) Incom

The demand function for gadgets is given by the following formula
Q = 1,000 -10Y - 2 P + 4A
where Q is quantity, Y is income, P is price, and A is advertising.
Currently, Y = 20, P = 30, and A is 15
What is the incomeelasticity of demand?

This year was prosperous for the Starbucks Coffee Company. revenues increased 9 percent, excluding the 1035 new retail outlets that were opened. suppose management attributes this revenue growth to a 5 percent increase in the quantity of coffee purchased. if Starbucks's marketing department estimates the incomeelasticity of

Demand for cassettes can be characterized by the following point elasticities:price elasticity =-2,cross price elasticity with aaa batteries is -1.5, andincomeelasticity =3. please explain the following statement.
a. A 3% price reduction in cassette players would be necessary to overcome the effects of a 2% decline in inco