Price Theory HW4

Price Theory HW4 - Skelton Eco 3301 Homework 4 1 Which of...

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Skelton Eco 3301 Homework 4 1. Which of the following might affect the price of a hamburger at Upton Sinclair’s Jungle Bar A)The price of meat rises. B)A new restaurant tax of $1 per hamburger is imposed. C)The restaurant is found to be in violation of a safety code which would be prohibitively expensive to correct. As a result, they are certain to incur a fine of $500 a year going forward. D) A new restaurant tax of $500 annually is imposed on all restaurants. E) After an internal audit of the prior year’s income statement, the restaurant realizes that they paid 15% more on a redecoration project than previously thought. F) Word gets around that many of the restaurant’s customers have been complaining of stomach problems. 2. Assume the government has undertaken a highway project that was originally estimated to cost $1 billion and deliver benefits worth $1.5 billion. Unfortunately, costs have been much higher than expected. To date, the government has spent $1.5 billion and estimates it
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Price Theory HW4 - Skelton Eco 3301 Homework 4 1 Which of...

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