Q. 1 illustrate what do economic model assume?
2 in illustrate what way are models helpful to economists?
3 illustrate what does an economist develop in order to test his or her theory or model?
Q. Utilizing a construction possibility frontier to show the 3 key economic concepts PF scarcity, choice also opportunity cost?
Q. Assume demand also supply are given by
Qxd =7- 1/2Px also
Qxs =1/4Px-1/2
• Conclude the equilibrium cost also quantity
• Assume a $6 excise tax is imposed on the good. Conclude the new equilibrium cost also quantity
• How much tax revenue does the government earn with $6 tax.