Werden’s Workshop invested $225,000 today to help fund future projects. How much additional money will the firm have three years from now if it can earn an annual interest rate of 4 percent rather than 3.5 percent? (Assume annual compounding.)

When a country is on the downward-sloping side of the Laffer curves, a cut in the tax rate will

Suppose John’s cost for performing some carpentry work is $120. If John is paid $200 for the carpentry work, what is his producer surplus?

If John’s willingness to pay for a good is $20 and the price of the good is $15, how much is John’s consumer surplus from purchasing the good?

Figure 7-1 Refer to Figure 7-1. When the price is P1, consumer surplus is

John has been in the habit of mowing Willa’s lawn each week for $20. John’s opportunity cost is $15, and Willa would be willing to pay $25 to have her lawn mowed. What is the maximum tax the government can impose on lawn mowing without discouraging John and Willa from continuing their mutually beneficial arrangement?

Use the following graph shown to fill in the table that follows. If an answer has multiple sections, ENTER THE LETTERS IN ALPHABETICAL ORDER. Surplus Table  N/A WITHOUT TAX WITH TAX CHANGE Consumer surplus Producer surplus Tax revenue Total surplus ​ ​

Figure 7-6 Refer to Figure 7-6. When the price falls from P2 to P1, producer surplus

Last year, Russell bought 8 pairs of shoes when his income was $42,000. This year, his income is $54,000, and he purchased 6 pairs of shoes. Holding other factors constant and using the midpoint method, it follows that Russell’s income elasticity of demand is about

Suppose the price of gas increases by 20%. Will demand be more elastic if consumers have 3 weeks or 3 years to adjust to this price change?