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Author Question: Which of the following functions is least likely to represent a real demand curve? A) Q = 120 - ... (Read 36 times)

Zulu123

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on: Jul 1, 2018
Which of the following functions is least likely to represent a real demand curve?
 
  A) Q = 120 - 2P
  B) Q = 120 - 3P + 2I
  C) Q = 120/P
  D) Q = 120 + 3P - 2I
  E) Q = 120/(Pa + Pb)

Question 2

Suppose the Environmental Protection Administration (EPA) proposes a change in automobile exhaust systems that reduces the amount of greenhouse gases (GHGs) emitted into the atmosphere, and they estimate that the net present value (NPV) of this
 
  policy change is worth 3 trillion dollars. To form this estimate, the EPA staff members assumed a particular social discount rate and a particular stock dissipation rate for GHGs. What happens to the NPV of this proposed policy if the staff members use a smaller stock dissipation rate? A) NPV increases
  B) NPV declines
  C) NPV remains unchanged
  D) We do not have enough information to answer this question


emilymalinowski12

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Reply #1 on: Jul 1, 2018
Answer to Question 1

D

Answer to Question 2

A


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