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What effect do government intervention, taxation, and regulations have on economic behaviour? Describe. What are real-world examples of government intervention, regulations and taxation? What are the goals of each?
Microeconomics, Economics
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Consider a competitive market for apples. Demand is given by the relation: Qd = 100 - 6P, whereas supply is given by the relation Qs = 50 + 4P. Evaluate the free market by finding the equilibrium price and quantity. Eval ...
Question: In the grim trigger example of the text, show that if the discount rate is low enough it pays the potential cheater to adhere to the agreement for two (or more) periods rather than break it in the first period. ...
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