The supply of smartphones is linear and upward sloping, and the demand for smartphones is linear and downward sloping. Suppose the government imposes a per-unit tax in the market for smartphones. In this market, the tax decreases consumer surplus by $4,650.00, and it decreases producer surplus by $2,550.00. The tax decreased the equilibrium quantity of the good by 1,400.00 smartphones , and it generated a deadweight loss of $2,100.00. The tax revenue generated by this tax is

Jennifer purchased a house in a brand new development in the outskirts of town. when her house was built, the nearest fire department was nearly 20 miles away. as her neighborhood developed, the density of the community called for a new fire department 1.5 miles away. what effect will the new fire station have on her homeowners insurance premium? a. a new fire department will be more demanding on local taxes. her annual premium will go up. b. the location of a fire department has no bearing on the value of her house. her annual premium will stay the same. c. the new fire department will reduce the risk of financial loss in her home. her annual premium should decrease. d. with a fire department so close (less than 5 miles), financial risk on jennifer’s home practically disappears. she will not need to pay insurance anymore.

As task uncertainty and interdependence increase, are a more effective coordination mechanism than

Teatro restoration, inc., begins renovating an old theater for urban edge productions, but after three months teatro demands an extra $250,000. urban edge agrees to pay. refer to fact pattern 13–4. if teatro says it is asking for the extra $250,000 because it has encountered extraordinary unforeseen difficulties that will add considerable cost to the project, the agreement is